European Stocks Decline

European stocks fell on Wednesday as investors largely steered clear of riskier bets ahead of the anticipated Federal Reserve's decision on interest rates and monetary policy outlook. The Stoxx 600 index dropped by 0.1%. The German DAX and French CAC indices each fell by 0.2% after reaching record levels on Tuesday. Investors expect the Federal Reserve to pause rate hikes in its decision to be announced later on Wednesday. U.S. inflation data released on Tuesday, which was higher than expected, did not alter bets on interest rate cuts next year. Attention will focus on comments from Federal Reserve Chairman Jerome Powell and the central bank's outlook on short-term interest rates for clues on when monetary policy easing might occur. The European Central Bank and the Bank of England will announce decisions on Thursday, with both expected to keep interest rates steady. The stock of as PPG increased by 4.4%, and Arkema rose by 5.5% after UBS upgraded its credit rating for both companies, making the chemicals sector the biggest gainer with a 1.1% increase. The healthcare sector rose by 0.9%, buoyed by a 1.6% rise in Novo Nordisk's stock. Conversely, the telecommunications sector fell by 1.3%, with Vodafone's stock dropping by 2.9%, impacting the Stoxx 600 index. Nel’s stock plummeted by 9.2% to the bottom of the Stoxx 600 after the Norwegian hydrogen company reported that one of its clients canceled an order, reflecting challenging market conditions for the sector, according to an analyst. Storebrand's stock declined by 4.2% after the Norwegian insurance company stated that it had struggled to meet its profit ambitions for 2023.