European markets saw a rise in trading on Wednesday as investors eagerly awaited the latest decisions from the U.S. Federal Reserve and new inflation data. The pan-European Stoxx 600 showed a 0.53% increase at 9:11 a.m. London time, with most sectors showing positive growth. Banking stocks were the top performers, showing a 1.36% increase, while the auto sector saw a slight decline of 0.72%.
In the U.K., economic data released on Wednesday indicated that the country’s growth remained stagnant in April, with a decrease in construction output for the third consecutive month. The gross domestic product reading for the month met expectations but was lower than the 0.4% expansion seen in March.
The U.S. Federal Reserve is set to announce its decision later in the day, following the release of the country’s May inflation report. Market analysts anticipate that the central bank will maintain its overnight borrowing rate within the 5.25% to 5.5% range. Investors will be closely watching for updates on the Fed’s economic projections, which could provide clarity on future policy decisions. Concerns have been growing among investors regarding the strong jobs report and persistent inflation, which may indicate a prolonged period of higher interest rates.
The latest consumer price index data is expected to show a minimal 0.1% increase from April, with a year-over-year rise of 3.4%. Meanwhile, U.S. stock futures remained steady on Tuesday night, while markets in the Asia-Pacific region showed a mixed response as investors assessed inflation data from various countries.
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