Key Facts
• On September 17, European stocks closed nearly unchanged ahead of the FOMC decision.
• Technology and retail stocks rose, while energy and mining stocks declined.
• UK inflation in August remained at a high level, unchanged from the previous month.
• Germany’s 30-year bond yield dropped 5 basis points to 3.23%, the lowest since August 14.
• France-Germany 10-year bond spread widened by 1 basis point to 81 basis points.
• UK 30-year bond yield fell 2 basis points to 5.43%.
• Bank of England expected to maintain its policy rate at 4% on September 18.
Summary
European markets remained steady on September 17 as investors awaited the U.S. Federal Open Market Committee’s (FOMC) policy announcement. Technology and retail sectors saw gains, while energy and mining stocks declined. In the UK, inflation for August stayed at its highest level in 18 months, matching the previous month’s rate. Bond markets showed notable movements, with Germany’s 30-year bond yield dropping to its lowest level since mid-August, and the France-Germany 10-year bond spread slightly widening. UK bonds also performed well, with the 30-year yield decreasing ahead of the Bank of England’s expected decision to keep its policy rate unchanged at 4%.
