European Markets Open Higher, Await Fed Decision

European markets opened with modest gains on Wednesday, following a mixed session in Asia, as investors awaited the Federal Reserve's final interest rate decision of the year.

European markets edged higher on Wednesday, tracking a mixed session in Asia, as investors awaited the final interest rate decision of the year from the Federal Reserve.

Positive inflation data and corporate news lifted optimism in some regions.

The CAC 40 in France gained 0.1% to 7,373.03, while Germany’s DAX rose 0.2% to 20,285.04. In the UK, the FTSE 100 climbed 0.2% to 8,211.66.

Official data showed inflation in November increased to 2.6%, marking a second consecutive monthly rise.

The Bank of England is expected to keep its benchmark interest rate steady during its meeting on Thursday, as is the Bank of Japan, which concludes its policy meeting on Friday.

In Asia, Japan’s Nikkei 225 dipped 0.7% to 39,081.71, despite a report indicating exports grew 3.8% year-on-year in November, while imports declined 3.8%.

In contrast, South Korea’s Kospi jumped 1.1% to 2,484.43, and Hong Kong’s Hang Seng advanced 0.8% to 19,864.55. The Shanghai Composite rose 0.6% to 3,382.21.

In Australia, the S&P/ASX 200 edged slightly lower, down 0.1% to 8,309.40.

Among individual movers, shares of Nissan Motor Corp soared 23.7% after the company confirmed discussions with Honda Motor Co on closer collaboration.

However, no formal decision has been reached on a potential merger, according to a separate report by共同通信社.

The two automakers, along with Mitsubishi Motors, have been working together on electric vehicle components and autonomous driving software to navigate rapid shifts in the automotive industry.

Meanwhile, shares of Honda dipped 3% following the news.

In U.S. markets, the S&P 500 slipped 0.4% on Tuesday, while the Dow Jones Industrial Average fell 0.6%. The Nasdaq Composite edged 0.3% lower from its recent record high.

The Federal Reserve is widely expected to announce its third interest rate cut of the year on Wednesday.

Projections about future rate trends are also anticipated, with inflation pressures remaining a key focus.

A stronger-than-expected report on November retail sales fueled speculation that the economy may not require further easing measures.

In commodities, U.S. crude oil rose 54 cents to $70.19 per barrel, while Brent crude gained 53 cents to $73.72 per barrel.

In currencies, the U.S. dollar strengthened to 153.71 Japanese yen from 153.50 yen, while the euro edged slightly higher to $1.0493 from $1.0491.