Europe close: Shares mixed ahead of Fed; Puma soars on takeover talk

(Sharecast News) - European stocks closed marginally lower on Wednesday ahead of a widely expected US rate cut, while Puma shares surged on a report that private equity firm CVC Partners was among investors interested in taking the company private.

The pan-regional Stoxx 600 index finished the session 0.04% lower at 550.64. Germany's DAX rallied to close 0.08% higher at 23,346 while the UK's FTSE 100 gained 0.14% to close at 9,208 and France's CAC 40 ended 0.4% down at 7786.98.

Investors expect the US Federal Reserve to cut rates by 25 basis points later in the day amid a softening labour market and fears of the impact of President Donald Trump's tariffs on domestic prices. However, the real interest will be focused on comments by central bank chief Jerome Powell about the future tempo of any further cuts.

"The Fed meeting later this evening is one of the most hotly anticipated for the year so far. The consequences of this meeting will be felt in two ways, the immediate decision and the longer-term consequences," said XTB research director Kathleen Brooks.

"We think that a 25bp cut is expected as the slowdown in the labour market justifies Fed action to support the economy to full employment. However, the market is likely to be more sensitive to what the Fed signals will happen in the future, and if they are embarking on a prolonged rate cutting cycle."

In the eurozone, inflation for August was revised downwards to 2% from a flash estimate of 2.1%.

UK official data showed inflation held steady at 3.8% in August, with the core rate, which strips out volatile energy and food costs, fell to 3.6% in July, in line with forecasts.

However, hard-pressed Britons are still paying higher prices for their food, meaning the BoE's base rate is likely to stay at 4% on Thursday - double its target of 2%.

On the equities front, Puma surged by almost 18% on a report in German publication Manager Magazin that two investors are preparing a takeover bid for the sportswear maker Puma.

Authentic Brands CEO Jamie Salter and private equity firm CVC's German head Alex Dibelius have both expressed their interest in the 29% stake held by the Pinault family, paving the way for a potential bidding war, the German magazine reported.

Shares in GSK rose as the pharma giant announced a $30bn investment in the US as President Donald Trump arrived in the UK for a state visit amid threats of large tariffs on the sector.

Centrica gained after Morgan Stanley called the energy firm a top pick, while ProSiebenSat.1 fell 5% after the German broadcaster cut forecasts for 2025.

Reporting by Frank Prenesti for Sharecast.com