Stock futures mostly up; attention on the Fed meeting

Wednesday's opening of European stock markets is anticipated to be mostly positive, with all eyes focused on the outcome of the most recent meeting of the US Federal Reserve to determine policy.

The announcement on Tuesday that October had the lowest level of eurozone inflation in more than two years lifted spirits around the continent.

According to Eurostat's flash estimate, prices increased by 2.9% year over year in October, the weakest rate since July 2021, from 4.3% a month earlier.

The market's perception that the ECB has finished hiking rates in its effort to combat excessive inflation is probably going to be strengthened by the data. This comes after ECB policymakers decided last week to halt the longest run of interest rate increases in the bank's 25-year history, maintaining the main policy rate at 4%.

But the focus will be primarily on the US central bank on Wednesday, as the Federal Reserve is scheduled to wrap up its most recent policy-setting meeting later in the day.

It is largely anticipated that the Fed will maintain current rates, and markets will once again closely monitor Chair Jerome Powell's remarks to determine the direction of interest rates.

Markets are pricing in a 25 basis point rise in December due to data indicating a robust economy, and traders are watching to see if Powell tries to keep another hike on the table.

In Europe, Wednesday's economic schedule is light. However, data from Nationwide indicates that U.K. house prices increased 0.9% in October, marking an annual decline of 3.3%, suggesting that the battered sector is trying to recover following a string of rate hikes by the Bank of England.  

Ahead of the end of the most recent Fed meeting, oil prices gradually increased on Wednesday as traders kept a careful eye on the most recent events in the Israel-Hamas conflict.

The American Petroleum Institute, an industry group, released data on Tuesday showing that, rather less than anticipated, U.S. oil stockpiles increased by 1.3 million barrels last week.

Later in the session, official Energy Information Administration data is due.

(Sources: investing.com, reuters.com)