Tuesday, Dec 09, 2025 | 17 Jumada Al-Akhirah 1447

European shares flat on caution ahead of Fed’s rate decision

By Brecorder.com - December 09, 2025

European shares were muted on Tuesday, as caution lingered ahead of the US Federal Reserve’s two-day policy meeting starting later in the day, while gains in financial and industrial stocks kept the index afloat.

The pan-European STOXX 600 was up 0.1% at 579.14 by 0810 GMT. Major regional benchmark indexes were broadly higher, with the German and the Spanish indexes up 0.3% each.

Financial services shares led gains, up 0.7%. Man Group and EQT gained 4.4% and 2.7%, respectively, after rating upgrades from J.P.Morgan.

Banks inched up 0.4%, led by a 1.6% rise in French lender BNP Paribas.

Industrial companies advanced 0.5%, with defence stocks leading the rise.

The broader index tracking defence and aerospace stocks was up 1.2%. Investors were cautious ahead of the Fed’s interest rate decision on Wednesday, where the US central bank is widely expected to deliver a 25-basis-point cut.

A monthly jobs opening report is on the radar, which can provide more insight on the health of the US labor market.

Among other stocks, Thyssenkrupp slumped 12.6% after the German conglomerate said it expects to swing to a net loss of up to 800 million euros ($931.04 million) in 2026.

British American Tobacco (BAT) was down 4.3% after the cigarette maker said it expects 2026 numbers to come in at the lower end of its mid-term targets.

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