European Stocks Flat as Markets Await The Fed

European stocks saw limited movement on Wednesday (October 28), with the STOXX 600 index dipping 0.1%, as investors held back ahead of a Federal Reserve decision and earnings reports from major U.S. tech companies. The DAX, CAC 40, and FTSE MIB remained relatively flat, while the FTSE 100 fell 0.2% and the IBEX 35 weakened by 1%.

Several major European banks reported quarterly results that beat expectations. BNP Paribas rose 1% after its third-quarter profit surpassed forecasts, while Standard Chartered surged 4.4%, bolstered by strong trading revenue and a robust wealth management business.

In Switzerland, UBS posted a third-quarter net profit of US$2.69 billion—an 8% year-on-year increase—largely in line with market expectations. Elsewhere, Dassault Systèmes raised its 2026 revenue growth target to 4%–5%, providing a positive boost to sentiment across parts of the European market.

Market focus remains fixed on the Federal Reserve’s decision, with the central bank widely expected to keep interest rates in the 3.75%–4% range. However, persistently high oil prices and relatively strong U.S. economic data have led the market to price in an approximately 80% chance of a rate hike in December.

Beyond the Fed’s decision, investors are awaiting earnings reports from Alphabet and Microsoft, due after the Wall Street close. The performance of these two companies will serve as a key indicator for the outlook on global AI and technology investments, and could potentially influence European semiconductor stocks such as ASML and ASM International. (srh)

Source: Newsmaker.id