UK’s FTSE 100 ends session lower with most Europe markets closed; Fed rate decision looms

London’s FTSE 100 index provisionally ended 0.3% lower on Wednesday, extending earlier losses, while most European markets were closed for the May Day/Labor Day public holiday.

Investors nonetheless have plenty to digest, with the U.S. Federal Reserve’s latest interest rate announcement after the central bank’s monetary policy committee concludes a two-day meeting later on Wednesday.

The interest rate decision follows another hotter-than-expected U.S. inflation reading last Friday. The U.S. central bank is widely anticipated to keep the borrowing cost unchanged but investors will closely monitor the post-announcement press conference with Chair Jerome Powell for clues on when that stance might change.

In Europe, results came in from luxury carmaker Aston Martin, which reported swelling losses, and GSK, which hiked its full-year profit forecast.

U.S. stocks were lower on Wednesday as Wall Street braced for the Fed policy decision.

In the Asia-Pacific region overnight, Australian and Japanese markets fell. Most Asian markets were also closed on Wednesday due to the Labor Day holiday.

Source from CNBC: https://www.cnbc.com/2024/05/01/european-markets-live-updates-fed-interest-rate-decision-and-stocks.html