Europe open: Shares slip ahead of Fed; Nissan/Honda tie-up talk in focus

European shares were slightly lower at the open on Wednesday as investors awaited the outcome of the Federal Reserve policy meeting and also assessed news of a potential tie-up between two of Japan’s best known auto makers Honda and Nissan.

The pan-regional Stoxx 600 index was down 0.10% at 513 points. Expectations from the Fed meeting are for a 25 basis point cut, but also an indication that policy makers will be more cautious with the pace of reductions over the next year.

In other economic news, UK inflation reached 2.6% in November, official data showed on Wednesday, the second consecutive monthly rise.

According to the Office for National Statistics, consumer price inflation rose in the 12 months to November to 2.6%, up from 2.3% in October. Largely in line with expectations, it was the highest print since March.

The Bank of England meets on Thursday with economists forecasting no change in rates.

Meanwhile in Japan, multiple media reports said the two auto giants were in exploratory talks to expand ties, including a potential merger. The two firms in March agreed to explore a strategic partnership for electric vehicles.

Shares in Renault, which owns around 23% of Nissan were up almost 7% in early trade.

Reporting by Frank Prenesti for Sharecast.com