European shares rise as oil rally pauses; all eyes on Fed
TLT•Banks and individual stocks rebound
On Wednesday, oil prices took a breather, down 0.6%. Stocks most hit by rising crude rebounded, with banks .SX7P among the biggest gainers. Barclays BARC.L and Standard Chartered STAN.L were up 1.4% and 1.7%, respectively.
These stocks had dragged the benchmark STOXX 600 to a three-month low on Tuesday.
Among individual stocks, Babcock International BAB.L retained its annual forecast. Shares of the British defence and engineering group were up 2.5%.
Barratt Redrow BTRW.L trimmed its home completions target for fiscal 2027, citing planning delays and fewer sales outlet openings. Still, its shares rose 5.1%.
Fed decision drives rate expectations
Attention is on the Fed's decision later in the day, with markets pricing in a 93% chance of a 25-basis-point interest rate hike, according to the CME's FedWatch tool. Rising inflation stemming from the Iran conflict have prompted markets to reassess their rate expectations.
European stocks recover as oil rally pauses
European shares staged a recovery on Wednesday after two sessions of declines as a rally in oil prices paused, lifting risk appetite ahead of the U.S. Federal Reserve's monetary policy decision.
The pan-European STOXX 600 .STOXX was up 0.4% at 636.81 points by 0705 GMT. Most major bourses rose, with Germany's DAX up 0.4%.
