BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening a tad higher on Wednesday ahead of the U.S. Federal Reserve's interest-rate decision later in the day, with markets pricing in a 92.4 percent chance of a 25-bps rate hike in response to a recent hot inflation report.
The Fed's potential first hike since July 2023, coming just seven weeks before the midterm elections, could provoke fresh criticism from the White House.
The post-meeting statement, updated economic forecasts and rate projections along with Chair Kevin Warsh's press conference may offer additional clues over whether more hikes could be in store.
Asian markets were modestly higher in cautious trade as U.S. stock index futures edged higher after two straight days of losses on Wall Street.
The yield on the U.S. 10-year Treasury bond slipped to 4.9875 percent in Asian trade after breaching the 5 percent mark on Tuesday for the first time in three years.
The U.S. dollar held gains to hover near a two-week high while gold jumped 0.7 percent to $4,325 an ounce after a two-day drop.
Oil prices were down about half a percent after industry data showed an unexpected build in U.S. crude inventories.
Both Brent and WTI contracts settled more than $3 higher at their highest levels since May 19 on Tuesday amid expectations of a prolonged disruption of Saudi Arabian oil flows to its Red Sea coast following last week's drone attack on its east-west pipeline.
Concerns over global oil supplies intensified after Saudi Arabia suspended Yanbu oil loadings and cancelled some cargo deliveries to European customers.
U.S. stocks ended lower overnight on concerns about the outlook for inflation, interest rates and the U.S. government's massive debt level.
The benchmark 10-year Treasury yield briefly touched 5.041 percent, its highest level since July 2007, while oil prices hit four-month highs after reports of fresh Houth strikes on Saudi Arabia.
While the S&P 500 declined half a percent to its lowest closing level in over a month, the Dow fell 0.6 percent and the tech-heavy Nasdaq Composite shed 0.8 percent.
European stocks dropped to three-month lows on Tuesday due to oil-driven inflation fears as tensions intensified across the Middle East.
The pan-European STOXX 600 fell 0.3 percent. The German DAX slid 0.2 percent, France's CAC 40 dipped 0.3 percent and the U.K.'s FTSE 100 gave up 0.4 percent.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
