European equities showed little direction on Wednesday, with traders largely on the sidelines ahead of a major policy announcement from the U.S. Federal Reserve.
As of 08:05 GMT, Germany’s DAX was down 0.1%, France’s CAC 40 eased 0.1%, while the UK’s FTSE 100 inched up 0.1%.
Fed meeting takes center stage
Global investors are focused on the Fed’s final policy meeting of the year, where the central bank is widely expected to cut interest rates by 25 basis points. The Fed previously reduced its benchmark range on October 29, lowering it to 3.75%–4.00% from 4.00%–4.25%.
That said, the decision may not be unanimous—five of the 12 FOMC members have either pushed back against or expressed doubt about further easing.
Adding to the complexity, the Fed still lacks full visibility into the economy. The record-length U.S. government shutdown has delayed the November jobs report until December 16, meaning policymakers must act without a complete data set.
Before the Fed announcement, the Bank of Canada is expected to keep rates unchanged at 2.25%, with many economists believing the current level may hold until at least 2027.
Tui shines in its 2025 results
In corporate news, Tui (TG:TUI1) delivered record adjusted earnings for fiscal 2025, beating its upgraded guidance from August and posting a 12.6% annual increase. The travel group also announced its first dividend.
Norway’s Storebrand (TG:A3KNZ7) raised its 2028 financial targets, lifting its return-on-equity goal to 17% from 14%.
Sweden’s Husqvarna (TG:HRZ) updated its long-term strategy and unveiled a significant cost-cutting program ahead of its capital markets event.
Attention will also turn to Oracle (NYSE:ORCL) after the U.S. close, with markets watching closely for results from the cloud and software heavyweight.
“Bookings [are] expected to be explosive (once again) while cash flow suffers from the company’s aggressive spending,” said analysts at Vital Knowledge, in a note.
Oil firms after steep stockpile drop
Crude prices ticked higher on Wednesday, supported by a sharper-than-forecast decline in U.S. crude inventories, ongoing Ukraine peace discussions, and expectations of a Fed rate cut later in the day.
Brent futures rose 0.2% to $62.05 per barrel, while U.S. West Texas Intermediate contracts gained 0.2% to $58.38.
Both benchmarks had fallen nearly 3% across the previous two sessions amid speculation that a Russia-Ukraine peace agreement could trigger the lifting of sanctions on Russian companies, potentially unlocking restricted crude exports.
But Tuesday’s American Petroleum Institute data offered a counterweight: U.S. commercial crude inventories slid by 4.8 million barrels in the week ending Dec. 5—far more than the roughly 1.7 million-barrel decline analysts had forecast.
The larger-than-expected draw points to either stronger consumption or tighter supply, providing a short-term boost to sentiment, along with the anticipated Fed rate cut.
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