European stocks decline ahead of Fed’s meeting

European stocks opened lower on Wednesday, affected by a wave of selling in shares of luxury products companies after a warning from Kering about sales, while investors remained cautious about concerns that the Federal Reserve (the US central bank) may indicate a slower path to reducing interest rates this year.

According to Reuters, the European Stoxx 600 index fell 0.2% by 0806 GMT.

The personal and household goods index fell by 1.6%, leading sector losses after the Kering Luxury Products Group announced that its sales in the first quarter will likely decline by about 10%.

In a sector-wide reaction, shares of other luxury companies, such as LVMH, Burberry, Richemont, and Christian Dior, fell between three and 4.9%.

Investors are awaiting the release of industrial production data in Italy for the month of January, in addition to a survey of consumer confidence in the euro zone for the month of March, which are scheduled to be released later today, Wednesday.

However, the main focus remains on the Federal Reserve’s monetary policy meeting later on Wednesday which may reveal its expectations for cutting interest rates.

Lonza shares increased 4.8% after the Swiss pharmaceutical manufacturer agreed to buy a Roche manufacturing facility in California for $1.2 billion in cash.