Europe open: Shares down ahead of US rate decision

European stocks were lower on Wednesday as investor attention turned to the US Federal Reserve interest rate announcement later in the day.

The Stoxx 600 was down 0.41% at 0830 GMT with all major bourses following suit. The Fed is expected to raise rates by 50 basis points.

Global markets rallied on Tuesday after the latest U.S. inflation showed that consumer prices rose less than expected in November, signalling that inflationary pressures could be starting to ease.

In economic news, UK inflation eased to 10.7% last month, official figures showed on Wednesday, as transport costs fell back.

The consumer prices index rose by 10.7% in the 12 months to November, down on October’s 41-year high of 11.1% and below consensus expectations of 10.9%.

In equity markets, holiday giant TUI slumped as it said it would raise cash to repay a Covid support loan even as it reported a return to annual profits and said it expected underlying earnings to increase significantly in 2023, despite market uncertainty.

Shares in Colruyt fell 14% as the Belgian supermarket chain posted a fall in profits.

Reporting by Frank Prenesti for Sharecast.com