European stocks move tightly ahead of Fed rate decision

European stocks moved in a limited range today, Tuesday, as investors returned from the Labor Day holiday on Monday ahead of decisions by the Federal Reserve (the US central bank) and the European Central Bank to raise interest rates later this week.

According to “Reuters”, the European Stoxx 600 index rose 0.1 percent by 0715 GMT, with banks and technology companies leading the index’s gains, rising 1.2 percent and 0.8 percent, respectively.

Shares of oil and gas companies fell 0.9 percent, tracking the impact of oil prices

The Federal Reserve is expected to raise interest rates by 25 basis points on Wednesday, but investors will still be waiting to see if the US central bank will signal a pause in interest rate hikes after May.

HSBC Holdings jumped 3.9 percent after quarterly profit beat expectations, tripling as higher interest rates around the world boosted bank income.

Electrolux shares rose 6.6 percent, and was the biggest gainer on the index, after reports that the Chinese Midea Group was close to a possible acquisition of the Swedish home appliance maker.

Meanwhile, BP shares fell 3 percent after the company scaled back a plan to buy back shares, but made a profit of $5 billion in the first quarter of 2023, up from the previous three months.

Investors are awaiting preliminary inflation figures in the eurozone for April, due at 0900 GMT, for additional indications of the European Central Bank’s monetary tightening path.