European Shares Tread Softly Ahead of Fed Rate Decision

European stocks saw minor declines as investors held back ahead of the U.S. Federal Reserve's interest rate decision. The STOXX 600 decreased, dragged by insurers and industrial stocks. Meanwhile, Delivery Hero's shares rose following strategic announcements. The focus remains on the Fed's next moves amid economic challenges.

On Wednesday, European shares experienced a slight dip as investors exercised caution ahead of the U.S. Federal Reserve's imminent decision on interest rates. The session also saw market players evaluating a slew of corporate updates.

The pan-European STOXX 600 index slipped 0.1% to 577.43 by 0808 GMT, marking its fourth consecutive day of losses. Germany and Spain's shares mirrored this trend, each dipping by 0.1%, along with France's CAC 40. This follows a narrow approval of France's 2026 social security budget, which proved a costly political feat for the government.

The U.S. Federal Reserve's decision, expected to result in a 25 basis points rate cut, remains at the forefront of market attention. Investors will closely analyze Chair Jerome Powell's remarks for insights into the bank's monetary policy plans amidst a softening economic landscape. Meanwhile, Delivery Hero made notable gains, climbing 6.1% after announcing a strategic review aimed at its capital allocation.

(With inputs from agencies.)