European stocks edged higher on Wednesday, November 1, 2023, with investors focused on the outcome of the US Federal Reserve’s two-day policy meeting. The pan-European STOXX 600 index rose 0.3% by 0709 GMT, with most sectors in positive territory.
Technology stocks were among the biggest gainers, with the STOXX 600 Technology index up 1.2%. Healthcare stocks also performed well, with the STOXX 600 Healthcare index up 0.9%.
Investors are awaiting the Fed’s decision on interest rates, which is expected to be announced later in the day. The Fed is widely expected to raise rates by 75 basis points, in an effort to combat rising inflation.
The Fed’s decision will have a significant impact on global markets, including European stocks. If the Fed raises rates more aggressively than expected, it could lead to a sell-off in risk assets, including stocks. However, if the Fed signals that it is prepared to slow the pace of rate hikes, it could boost investor sentiment and support stock prices.
Other factors that could impact European stocks on Wednesday include:
Earnings reports from several major companies, including Unilever and Deutsche Telekom
Economic data from the UK, including the latest inflation figures
Geopolitical tensions, including the ongoing war in Ukraine
Overall, European stocks are expected to remain volatile in the near term as investors await the Fed’s decision and other key events.