Upgrade Now

Europe midday: Shares pace gains ahead of Fed, BoE

By Frank Prenesti

Date: Monday 15 Sep 2025

(Sharecast News) - European shares were higher at midday on Monday as attention turned once again to central bank meetings in the US and UK.
The pan-regional Stoxx 600 index was up 0.52% to 557.72 as of 1153 BST. Germany's DAX rose 0.45%, while Britain's FTSE 100 edged ahead by 0.02%.

Policy makers at the US Federal Reserve gather on Wednesday while the Bank of England's Monetary Policy Committee meets a day later.

Markets are pricing in a 25 basis point US rate cut as a 96.2% certainty after recent data showed a weaker labour market amid worries over the impact of US President Donald Trump's tariff policies. On the other side of the pond the BoE is expected to make no change.

''There's a wait and see mood at the start of the week as investors eye key central bank meetings and assess the potential path of interest rate cuts. Warnings about higher food prices coming in the UK are likely to cause fresh worries about how long borrowers will have to wait until Bank of England policymakers vote for another cut," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"They are set to leave the base rate unchanged on Thursday and aren't expected to make a move until next Spring. The Food and Drink Federation is forecasting food inflation could reach 5.7% by the end of December and still be running at 3.1% by the end of 2026."

"However, the Fed is expected to cut interest rates on Wednesday. Even though inflation is still sticky in the US, the darkening outlook for the jobs market indicates more disinflationary pressures are brewing. As further cuts are forecast, it's been keeping optimism alive on equity markets, with stocks on Wall Street set for a further rebound."

In equity news Rubis shares jumped on a report that CVC Capital Partners and Trafigura were interested in buying the fuel retailer.

Reporting by Frank Prenesti for Sharecast.com

..

Email this article to a friend

or share it with one of these popular networks:


Top of Page