Europe midday: Shares extend gains ahead of Fed rate decision

(Sharecast News) - European shares extended gains on Wednesday as investors eyed the latest developments on the US-Iran peace deal and looked ahead to an interest rate decision from the US Federal Reserve.

The pan-regional Stoxx 600 index was up 0.40% at 638 at 1153 BST. Traders also assessed eurozone inflation which was confirmed at 3.2% in May its highest level in two-and-a-half years.

Major bourses were mixed with the UK's FTSE flat after official data showed inflation held steady last month despite rising prices caused by the war. Economists had expected a rise to 3%.

Germany's DAX was up 0.12and France's CAC 40 rose 0.30%.

The Federal Open Market Committee meeting is the first under new chair Kevin Warsh with economists forecasting policymakers will hold rates at their target range of 3.5% to 3.75%, despite rising energy prices caused by US President Donald Trump's war of choice on Iran.

Oil prices slipped further as the peace deal appeared to be holding even as Israel continued to bomb Lebanon - a red line for Tehran.

Brent crude was down 1.10% to $78.09 and West Texas Intermediate fell 1.29% to $75.07.

In equity news, shares in Auto1 Group surged as the online used car retailer confirmed 2026 guidance.

BMW slumped as the German auto giant slashed guidance due to a weaker Chinese market and the Iran war.

Straumann shares jumped as the Swiss dental implant company lifted its fiscal outlook.

Reporting by Frank Prenesti for Sharecast.com