Europe: Equities open higher before Fed rate move

EUROPE’S main stock markets opened higher on Wednesday (Nov 2), with investors expecting another jumbo interest rate hike from the US Federal Reserve (Fed) in a bid to cool red-hot inflation.

London’s benchmark FTSE 100 index rose 0.2 per cent to 7,197.89 points, also on the eve of another widely-forecast large rate increase from the Bank of England.

In the eurozone, the Paris CAC 40 added 0.7 per cent to 6,374.69 points and Frankfurt’s DAX index won 0.4 per cent to 13,385.63.

“Investors are waiting for clues from the Federal Reserve about the path of rate rises, and in the meantime a slightly more wary mood has settled on the markets,” said Hargreaves Lansdown analyst Susannah Streeter.

“The Fed is expected to bring in another super-size rate hike of 0.75 percentage points, but that has been priced in.”

Asian stocks traded mixed Wednesday after losses on Wall Street, as forecast-beating US data jolted hopes the Fed could soon tone down its hawkish pace of rate hikes. AFP