FRANKFURT: European shares ended flat on Wednesday as investors avoided making big bets ahead of the Federal Reserve’s monetary policy decision, while Puma surged on a report of a takeover approach for the sportswear firm.
The pan-European STOXX 600 closed 0.05 percent lower at 550.53 points, to trade at a one-week low.
The Fed is widely expected to deliver a 25-basis-point rate cut at the conclusion of its two-day policy meeting on Wednesday, as the central bank navigates the signs of cracks in the labour market.
While the verdict is largely baked in, it will be Fed Chair Jerome Powell’s potential comments on the monetary policy outlook that will hold investors’ interest.
“But the question is: Is this the first step in a number of rate cuts to come, or is the Fed still not willing to commit to any path for interest rates in the future?”
“It is why European markets are not moving very strongly today, given that uncertainty.”
The meeting will also highlight the political influence affecting the Fed, underscored by Steven Miran - currently on leave from the Trump administration - joining the policy table, alongside Fed Governor Lisa Cook, who has so far
fended off attempts by President Donald Trump to remove her.
On the STOXX 600, the oil and gas index led losses by falling 1.2 percent, tracking lower crude prices. It was joined by basic resources, also down 1.2 percent, as copper prices hit a week’s low.
Meanwhile, Puma jumped 16.7 percent to a near two-month high after Manager Magazin reported two parties were preparing for a potential takeover of the German sportswear maker. Peer retailer Adidas was up 1.7 percent, while JD Sports added 0.5 percent.
Jamie Salter of Authentic Brands and Alex Dibelius of CVC expressed interest in the Pinault family’s 29 percent stake.
Commerzbank CEO Bettina Orlopp labelled UniCredit’s approach for a potential merger as “unfriendly” and said any deal would likely hurt revenue.
Commerzbank fell 2.7 percent and UniCredit lost 3.5 percent, driving the regional banking index 1 percent lower.
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