European Shares Log Modest Gains As Investors Await Fed Verdict

(RTTNews) - European stocks rose slightly on Wednesday ahead of Eurozone industrial production data for October and the Federal Reserve's interest-rate decision due later in the session.

While no change in interest rates is expected, Chair Jerome Powell's press conference and the Fed's dot plot of future policy trajectory accompanied by revisions to the summary of economic projections could offer more clarity on when the Fed could begin cutting rates next year.

The pan European STOXX 600 edged up 0.2 percent to 473.77 after declining 0.2 percent on Tuesday.

The German DAX, France's CAC 40 and the U.K.'s FTSE 100 were up between 0.2 percent and 0.4 percent.

The British pound weakened after data showed the U.K. economy contracted in October on widespread declines across services, production and construction sectors.

Gross domestic product unexpectedly shrank 0.3 percent in October, partially offsetting growth of 0.2 percent in September, according to the Office for National Statistics. Analysts expected GDP to remain flat in the month.

On a yearly basis, GDP expanded 0.3 percent but much weaker than the 1.3 percent growth logged in September and economists' forecast of 0.6 percent.

In corporate news, Spanish clothes retailer Inditex advanced 1.5 percent after it reported strong holiday sales and lifting its FY23 margin outlook.

Lower oil prices weighed on the energy sector, with BP Plc and Shell falling around half a percent each.

British gambling group Entain rose nearly 4 percent on news its chief executive Jette Nygaard-Andersen is stepping down with immediate effect.

German chemicals giant BASF rallied 3.6 percent after UBS upgraded its rating on the stock to "buy".