European markets head for mixed open ahead of Fed decision

LONDON — European markets are set to open in mixed territory on Wednesday as investors look ahead to the latest monetary policy decision from the U.S. Federal Reserve.

Britain’s FTSE is expected to open 16 points at 7,322, the German DAX is seen 47 points higher at 13,144, France’s CAC is expected to open 9 points lower at 6,203, and Italy’s FTSE MIB up 68 points at 21,228, according to data from IG.

Global investors are focused today on the Fed’s forthcoming monetary policy decision, due to be announced Wednesday following a two-day meeting. Markets are widely anticipating a second consecutive 75 basis point hike to interest rates.

Like many central banks around the world, the Fed is acting aggressively to rein in inflation against a backdrop of slowing economic activity.

Concerns for the global economy deepened on Tuesday after the International Monetary Fund cut its global growth projections for 2022 and 2023, dubbing the world’s economic outlook “gloomy and more uncertain.”

The IMF now expects the global economy to grow 3.2% this year, before slowing further to a 2.9% GDP rate in 2023. The revisions mark a downgrade of 0.4 and 0.7 percentage points, respectively, from its April projections.

It’s a busy day for earnings in Europe with Credit Suisse and Deutsche Bank reporting as well as Daimler, Danone, Carrefour and Airbus.

Data releases include GfK consumer sentiment for August, French consumer confidence for July and the Russian employment rate for June.