Stoxx 600, FTSE, DAX, Fed decision

LONDON — European stocks were mixed on Wednesday as global investors gear up for the U.S. Federal Reserve’s interest rate decision.

The pan-European Stoxx 600 was flat shortly after the opening bell, with most major indexes showing little sign of movement while regional sectors traded in mixed territory.

Delivery Hero stock jumped 6% after the company said it was evaluating its strategic options and focused on delivering “financial improvements.” In a letter to shareholders, published after European markets closed on Tuesday, the German food delivery giant said it was considering various strategic changes, including partnerships for select country operations and capital allocation measures.

Global markets are awaiting the outcome of the Fed’s final meeting of the year on Wednesday.

The central bank is widely expected to deliver its third interest rate cut of a quarter percentage point, with Fed Funds futures suggesting an 87.6% chance of a decrease, according to CME’s FedWatch tool.

Sentiment among members of the rate-setting Federal Open Market Committee remains divided, however: Some favor cuts to stave off further labor market weakness, while others believe another cut could worsen inflation.

Investors are looking to gauge members’ sentiment from the post-meeting statement and Chair Jerome Powell’s highly anticipated news conference on Wednesday afternoon. 

“Beyond the immediate policy decision, our U.S. economists also expect there to be dissents in both a hawkish and dovish direction,” Deutsche Bank’s Jim Reid said in a Wednesday morning note. “So to forge a consensus behind a rate cut today, they anticipate the statement and press conference will signal that the hurdle is relatively high for another cut in early 2026.”

The CME’s FedWatch shows money markets are pricing in a 69.3% chance of the key interest rate being in the range of 3.5% to 3.75% after the central bank’s January meeting, which will be where it stands if the Fed cuts today, signalling expectations of a hold at the first meeting of 2026.

In early trade on Wednesday, the Stoxx Europe Banks index was 0.2% higher.

European market sentiment is likely to have taken a hit this week after U.S. President Donald Trump called the continent’s leaders “weak” in an interview with Politico that was published Tuesday.

Trump has a checkered relationship with European leaders, appearing to get on well with some — such as the U.K.’s Keir Starmer and Italian PM Giorgia Meloni — and not so much with others. In the interview, the president criticized “decaying” Europe for failing to control migration or take action on the Ukraine war.

“I think they don’t know what to do,” he said in the interview, adding: “Europe doesn’t know what…