European shares broadly higher ahead of Fed rate announcement

European shares are higher ahead of the US Fed's rate announcement.

European shares broadly higher ahead of Fed rate announcement

European shares are broadly higher Wednesday amid a stronger dollar ahead of the conclusion of the US Fed’s two-day policy meeting when it is widely expected to announce higher rates. Investors will watch the post-meeting press conference closely for clues as to the future path of US rates.

Investors remain a little subdued amid that development and as they continue to digest the details that emerged from the Trump-Kim meeting.

By 1415 BST, the EUROSTOXX 600 was 0.30% higher and the EURSTOXX 50 had gained 0.21%. Regional bourses were also broadly in the green. The German DAX rose 0.31%, the French CAC was up 0.20% although the Spanish IBEX lost 0.15%.

Fed meeting conclusion awaited

Investors appear cautiously optimistic ahead of the announcement from the latest US Fed meeting. While a rate hike is mainly priced in, further hints as to the future path of rates for the remainder of the year will be closely watched for.

The US Fed isn’t the only key rate decision on investors’ minds this week. The ECB will meet Wednesday and the Bank of Japan is set to publish its latest monetary policy update Friday.

Central bank decisions and updates are always closely monitored by the markets as rate hikes can have an effect on stock prices and currencies.

Stock movers

Against the back drop of central bank watching and digesting the historic Trump-Kim meeting, investors were also moved by individual stock news.

Inditex shares are trading 277% higher at €29.72 after reporting a better-than-expected Q1 earnings. However, some questions remain as its organic earnings results was disappointing.

Adyen shares surged on their first day of trading as the Dutch fintech firm appears popular with investors.

Dixon Carphone shares, meanwhile, slipped 2.73% to £192.35 amid an investigation into a customer data breach of 1.2 million personal records and 5.9 million payment cards.

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