European Markets Stay Quiet Ahead of Fed Decision, Trade Talks in Focus

European equities traded in subdued fashion on Tuesday as investors waited for clarity from the Federal Reserve’s policy meeting while parsing fresh economic data across the region.

By mid-morning, Germany’s DAX slipped 0.1%, France’s CAC 40 eased 0.2%, and the U.K.’s FTSE 100 dipped 0.1%. The lack of momentum reflected market caution, with investors holding back ahead of a key week for central banks.

Fed Policy Meeting Sets the Tone

The Fed begins its two-day policy meeting later Tuesday, with markets widely expecting a rate cut when the decision is announced on Wednesday. A move to ease U.S. policy could provide support to global markets.

The Bank of England also meets this week but is expected to stand pat on Thursday after delivering its fifth rate cut in just over a year last month.

U.K. inflation remained sticky at 3.8% in July—highest among the G7—but new data showed employment declining for a seventh straight month and wage growth cooling, potentially easing pressure on the central bank.

Investors also awaited more eurozone data, including Italian inflation, Germany’s ZEW sentiment survey, and regional industrial production figures.

U.S.-China Trade Relations in Spotlight

Global sentiment improved after reports of progress in U.S.-China trade talks held in Madrid. Treasury Secretary Scott Bessent said both sides reached a framework agreement on TikTok’s U.S. ownership, with China easing tariff demands and Washington gaining security concessions.

Still, uncertainty lingers after Chinese regulators claimed chipmaker Nvidia violated anti-monopoly rules, keeping tensions alive.

Corporate Updates: Mining, Services, and Construction

In corporate news, Anglo American and Chile’s state-owned miner Codelco finalized a partnership to jointly operate neighboring mines in Chile, a move expected to unlock at least $5 billion in value.

JTC Group reported a steep 60% drop in first-half profits due to acquisition costs, despite higher revenue. Meanwhile, U.K. builder Kier Group surprised with robust annual results, unveiling a record order book, an increased dividend, and a new share buyback program.

Oil Prices Ease After Rally

Crude prices dipped slightly, taking a breather after recent gains. Brent futures slipped 0.2% to $67.28 per barrel, while U.S. WTI edged 0.1% lower to $63.25.

Oil had climbed 1–2% last week as Ukraine escalated attacks on Russian energy infrastructure following stalled peace talks. Kyiv has increasingly targeted Russian oil facilities, aiming to curb Moscow’s ability to finance its war effort.