Europe midday: Shares gain ahead of US Fed rate decision

(Sharecast News) - European shares rallied to post gains on Wednesday as traders awaited a rate decision from the US Federal Reserve later in the day and assessed a wave of corporate results and updates.

The pan-regional Stoxx 600 index rose 0.21% to 576 at 1147 GMT with all major regional bourses higher.

Markets have priced in a 25-basis point cut with expectations of further reductions in December and January as policy makers grapple with a weak jobs market and the impact of President Donald Trump's erratic tariff policy.

There is also the added complication of the federal government shutdown restricting the availability of data for Fed officials.

"With markets pricing a near certainty that (Fed chair Jerome) Powell & co cut rates by 25bp today, there is likely to be little volatility when that does occur today. The lack of data available to the Fed means that the so-called data dependant approach comes into question if we continue to see the ongoing blackout in play as the government shutdown rolls on," said Marketscope analyst Joshua Mahony.

"Meanwhile, with liquidity stresses arising at the Fed, there will be a significant focus on whether they opt to end the quantitative tightening process or push that to the end of the year."

Eyes were also on talks between US President Donald Trump and his China counterpart Xi Jinping in South Korea over a trade deal.

In equity news, banking technology provider Temenos surged after a lifting full-year forecasts.

UK clothing retailer Next also jumped as it also raised annual guidance.

Sweco advanced as the Swedish engineering consultancy posted solid third-quarter results.

Reporting by Frank Prenesti for Sharecast.com