Traders work, as a screen broadcasts a news conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 17, 2025.
Brendan McDermid | Reuters
LONDON — European stocks are expected to open in negative territory on Wednesday as investors await the conclusion of the U.S. Federal Reserve’s meeting.
The U.K.’s FTSE index is seen opening slightly below the flatline, Germany’s DAX 0.4% lower, France’s CAC 40 down 0.16% and Italy’s FTSE MIB 0.12% lower, according to data from IG.
The big event for markets is the Fed’s interest rate cut today with a quarter-point trim widely seen as a done deal by traders. If the Federal Open Market Committee acts as expected, it will bring the federal funds rate to a range between 3.75%-4.00%.
What’s less certain is whether Chair Jerome Powell will strike a dovish tone in his post-meeting comments.
Following the cut this week, 84% of respondents see another reduction in December, and 54% see a third in January, according to the October CNBC Fed Survey. A total of 100 basis points of rate cuts are forecast this year and next, bringing the fed funds rate down to 3.2% by the end of 2026.
Earnings are also dominating market attention this week with Alphabet, Meta Platforms and Microsoft set to report after the U.S. close on Wednesday. Apple and Amazon post results on Thursday.
In early morning filings, Santander posted record nine-month profit, rising 7.8% year-on-year, which the bank puts down to strong business performance and efficiencies such as simplifying operations, fewer bad loans and credit risks, and more customers.
The firm’s revenue hit 15.3 billion euros in the third quarter, up 1% year-on-year but narrowly missing analyst estimations, according to data compiled by LSEG. Its net operating income, however, slightly overperformed at 8.99 billion euros, a 2% increase on last year’s quarter. It held tight on its 2025 guidance of 62 billion euros in revenue.
However, Santander’s British subsidiary delayed its results following a court judgement on Friday that ruled it must disclose the dealer commissions on motor finance transactions, as part of the fallout from the motor finance scandal.
Meanwhile, Deutsche Bank reported better-than-expected net profit of 1.56 billion euros ($1.82 billion) in the third quarter, compared with 1.34 billion euros that analysts expected, per LSEG. The figure represents a quarterly rise of 7%. The German bank said that all four of its businesses – the corporate bank, investment bank, private bank and asset management – are “progressing on their strategic plans,” putting it on track for the year. Its current guidance states revenue of around 32 billion euros.
Trade tensions between the U.S. and China appear to be abating ahead of President Donald Trump’s meeting with Chinese President Xi Jinping on Thursday. Trump said Wednesday that he expects to lower fentanyl-linked tariffs on China ahead of the meeting.
It’s a busy day for earnings in Europe on Thursday with Airbus, UBS, Banco Santander, Equinor, Deutsche Bank, BASF, Adidas, GSK and Endesa set to report. Data releases include Spanish GDP.
— CNBC’s Steve Liesman and Sarah Min contributed to this market report.
