Europe open: Shares slide ahead of Fed rate meeting
European shares opened lower on Tuesday as all eyes turned to the start of the US Federal Reserve’s two-day policy meeting, with expectations of a 25-basis point cut in rates.
The pan-regional Stoxx 600 index was down 0.64% at 512 points in early trade. A decision from the Fed is expected Wednesday, after which attention will turn to the UK a day later, where the Bank of England is expected to keep rates on hold.
Germany’s Dax was flat after Chancellor Olaf Scholz lost a no-confidence vote in his government and called elections for February 23. All other major European bourses were lower.
In the UK, the unemployment rate was steady in the three months to October, while pay growth picked up, according to official figures released on Tuesday.
The unemployment rate came in at 4.3%, unchanged from the previous month. Meanwhile, average pay, including and excluding bonuses, rose 5.2%. This compares to 4.9% growth for regular earnings in the previous three months, and 4.4% for total earnings.
In equity news, Bunzl shares slid after the company released a trading statement saying revenues would rise but would be held back by inflation and weaker volumes.
Reporting by Frank Prenesti for Sharecast.com