European Stock Markets Set to Open Higher: Fed Rate Decision and Oil Price Volatility in Focus

Gate News Report, March 18 — European stock markets are expected to open broadly higher on Wednesday as market sentiment gradually improves, but investors’ attention has clearly shifted to the upcoming Federal Reserve interest rate decision. Data shows that Germany’s DAX and France’s CAC 40 are expected to rise about 0.5%, Italy’s FTSE MIB may increase 0.8%, while the UK’s FTSE 100 could remain flat.

Despite ongoing tensions between the US and Iran, and international oil prices briefly surpassing $100 per barrel, oil prices have pulled back in the short term amid rising US crude inventories, easing some market concerns over energy supply tightness. Meanwhile, Trump recently made strong statements on the security of the Strait of Hormuz, which has also heightened geopolitical uncertainties.

On the macro front, markets generally expect the Federal Reserve to keep the current interest rate range of 3.5% to 3.75% unchanged. Investors are focused on whether Powell will signal new policy directions or comment on inflation and oil price increases.

In Europe, inflation data from the EU will be released later, and the European Central Bank, Bank of England, Riksbank, and Swiss National Bank will also announce their rate decisions on Thursday. The convergence of multiple macro events has increased short-term volatility expectations in global markets, with ongoing attention to capital flows and risk appetite changes. (CNBC)