Fed decision, stocks and inflation data

Shares in Just Eat and Delivery Hero rose above the Stoxx 600 in early trading after a US federal judge ruled on caps on delivery fees.

Shares of European-listed Delivery Hero and Just Eat soared after a district judge said on Tuesday that food groups could sue New York City over a law capping restaurant meal delivery fees. Each rose 7%. The ruling sent the U.S.-based shipping company’s stock price up, with ripple effects spreading across the Atlantic.

— Hannah Ward-Glenton

Shares in Swiss insurance company Baloise fell 8% in early trading following the incident. report Disappointing first half result.

Profit attributable to shareholders was CHF 214.7 million ($239 million), down from CHF 205.7 million in 2022.

Baloise said the reduction was due to lower profits in the life insurance business, as well as higher costs and negative currency effects.

Shares in German insurance company Talanx fell 7% following the company’s acquisition. started A capital increase of up to 300 million euros is scheduled for Tuesday.

“This action is in response to repeated requests from investors to increase Talanx’s free float and lay the foundations for improving the trading liquidity of the stock,” Jan Wicke, CFO of Talanx AG, said in a press release. It is a thing,” he said.

— Hannah Ward-Glenton

European markets opened cautiously higher on Wednesday as global investors awaited the latest monetary policy decisions from the US Federal Reserve.

The pan-European Stoxx 600 index opened 0.2% higher, with sectors slightly straddling positive and negative territory. Healthcare stocks led the gains, rising 0.9%, while oil and gas fell 0.8%.

— Hannah Ward-Glenton

UK inflation in August was 6.7%, lower than expected and down slightly from the previous month.

On a monthly basis, the Composite Consumer Price Index (CPI) increased by 0.3%.

Economists polled by Reuters said that while prices rose slightly, the main figure was an annualized rate of 7%, down 0.4% from the previous month, compared to July’s decline of 6.8% from the previous month, or 0.4% from the previous month. It was expected to rise 7%.

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— Elliott Smith

The U.S. Federal Reserve is widely expected to keep interest rates unchanged on Wednesday, but central bankers have released a summary of their economic outlook, including one of the key charts traders will be watching: He is scheduled to provide an update on the economic outlook.

A so-called “dot plot” charting the expected movement in the federal funds rate and Chairman Powell’s press conference will give investors clues about what will happen at the November meeting and in 2024.

“I think they will maintain their bias towards higher rates and signal that they are prepared to raise rates further if the data starts to show that inflation is not slowing as much as expected, or if the labor market holds up. “It’s too tight,” said Gus Faucher, chief economist at PNC Financial Services Group.

Click here for more information about the conference.

— Jeff Cox, Jesse Pound

Falling house prices and rising rents are expected to benefit two British stocks, equity analysts said.

As mortgage rates rise and home builders are under pressure to increase sales, these two unique stocks are poised to take advantage of the environment.

Analysts expect this trend to cause either stock to rise more than 60% over the next 12 months.

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— Ganesh Rao

Matt Orton of Raymond James Investment Management says one tech giant is currently “the cheapest of all the mega-cap stocks.”

It’s one of the “two big long-term winners” in the artificial intelligence space, but it’s undervalued in the field, he told CNBC.

CNBC Pro subscribers can read more here.

— Tan Weizhen

European markets are expected to open mixed on Wednesday.

According to IG data, the UK’s FTSE 100 index is expected to open 21 points lower at 7,636, Germany’s DAX rises 4 points to 15,659, France’s CAC is flat at 7,270 and Italy’s FTSE MIB at 40. It is expected to drop by 28,747 points.

High-profile data in Europe on Wednesday includes UK inflation figures for August and new car registrations in the UK, Germany, Netherlands, Italy and France.

— Holly Ellyatt