European stocks edge higher ahead of pivotal Fed decision

European equities opened modestly higher on Wednesday, as investors turned their attention to the Federal Reserve’s policy decision later in the day.

While a 25 basis point rate cut is fully priced in by markets, the spotlight remains firmly on Chair Jerome Powell’s post-meeting remarks for guidance on the trajectory of US monetary policy.

With another cut expected in December, investors are keen to assess whether the Fed will hint at a potential pause in 2026.

Across Europe, corporate results offered a mixed picture. Deutsche Bank gained after reporting a 7% year-on-year rise in pre-tax profits for Q3. Mercedes-Benz also rallied. Conversely, Adidas shares slipped after revealing weak North American performance, with sales down 5% in the region.

Looking ahead, global markets will also await US earnings from Alphabet, Meta, and Microsoft after the closing bell, alongside political developments from Washington and Beijing. These factors, coupled with Powell’s speech, could set the tone for equity markets for the coming days.