America News Agency

The pan-European Stoxx 600 index traded flat shortly after the opening bell, with most major indices showing little movement and regional sectors performing mixed.

Delivery Hero shares rose 6% after the company announced it is evaluating strategic options and focusing on “financial improvements.” In a shareholder letter released Tuesday after European markets closed, the German food delivery giant said it is considering various strategic adjustments, including partnerships and capital allocation measures in certain countries.

Global markets are awaiting the outcome of the Fed’s final meeting of the year. Analysts estimate an 87.6% probability of a third consecutive quarter-point rate cut.

However, disagreement persists among members of the Federal Open Market Committee (FOMC): some favor a rate cut to prevent further weakening in the labor market, while others fear a cut could worsen inflation.

Investors are watching the post-meeting statement and Fed Chair Jerome Powell’s widely anticipated press conference on Wednesday afternoon to gauge policymakers’ views.

Jim Reid of Deutsche Bank said Wednesday morning: “Beyond the immediate policy decision, our US economists expect a range of views—both hawkish and dovish. Therefore, they anticipate that today’s statement and press conference will signal that the bar for another cut in early 2026 will be relatively high.”

According to analysts, money markets are pricing in a 69.3% probability that the Fed’s main rate will remain in the 3.5%–3.75% range after the January meeting—where it would stand if the Fed cuts rates today—suggesting rate stability at the first meeting of 2026.

Early Wednesday, the Stoxx Europe Banks index rose 0.2%. A Politico interview published Tuesday in which US President Donald Trump called European leaders “weak” may have negatively affected European market sentiment this week.

Trump’s relationships with European leaders are uneven; he appears to get along with some (such as the UK’s Keir Starmer and Italy’s Giorgia Meloni) but not others. In the interview, he criticized a “decaying” Europe for failing to control migration and for not taking action on the Ukraine war.

“I don’t think they know what they’re doing,” Trump said. “Europe doesn’t know what to do.” These comments come at a time when Europe is trying to strengthen its voice in discussions surrounding Ukraine peace proposals.

The remarks follow last week’s release of Trump’s new national security strategy, which questioned whether European nations can remain “reliable allies.”