European shares slipped on Wednesday, a day after strong gains on Germany’s approval for a massive spending surge, while focus shifted the US Federal Reserve’s interest rate decision.
The pan-European STOXX 600 was down 0.3%, as of 0813 GMT, while Germany’s blue-chip index fell 0.5%.
German equities had jumped on Tuesday after the country’s parliament approved plans for a massive spending surge to revive economic growth and scale up military spending.
European aerospace and defence index, the beneficiary of higher defence spending prospects, jumped 0.7% to a record high.
Long-term growth prospects from fiscal reforms also enabled Barclays to raise its year-end target for the STOXX 600 index.
European shares climb after German lower house passes reform bill
Meanwhile, the Fed is widely expected to keep rates on hold later in the day.
A similar move is also expected from the Bank of England on Thursday.
Basic resources led losses among sectors, falling 0.7%, followed by European banks, which lost 0.5% after closing at an all-time peak in the prior session.
In other stocks, Traton dropped 6.3% after its parent Volkswagen said it had sold a 2.2% stake in the truckmaker for 360 million euros ($393 million).
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