A market stall in the Kingston district of London in 2024.
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LONDON — European markets fell on Wednesday as investors considered key data from the region and looked to the U.S. Federal Reserve interest rate decision.
The pan-European Stoxx 600 index was down 0.45% at 12:39 p.m. London time, with regional bourses and sectors mostly pulling back. Healthcare stocks fell 0.85%, while media stocks shed 0.92%.
The Stoxx 600 index had closed higher on Tuesday.
In Europe, U.K. inflation figures for August were published Wednesday, coming in at 2.2% according to data from the Office for National Statistics. That was unchanged from July and in line with expectations.
The data comes ahead of the Bank of England meeting and interest rate policy decision scheduled for later this week. It is a busy week for central banks, with the Bank of Japan and the U.S. Federal Reserve also scheduled to meet.
The Fed is all but guaranteed to announce an interest rate cut on Wednesday, which would be its first since it started hiking rates in March 2022.
Traders are however split about the magnitude of the cut. Chances of a 50-basis-point reduction have been rising in recent days and last stood at 65% according to CME Group’s FedWatch tool.
U.S. stock futures were little changed ahead of the Fed decision. Asia-Pacific markets were meanwhile mixed on Wednesday.
Back in Europe, the final reading of euro zone inflation figures for August is also due.