A television station broadcasts the Federal Reserve's decision to hold rates after a Federal Open Market Committee (FOMC) meeting on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, Jan. 28, 2026.
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LONDON — European stocks are expected to open broadly higher on Wednesday as the market fallout of the Iran war remains in the spotlight ahead of the U.S. Federal Reserve's next policy move.
The U.K.'s FTSE 100 is set to trail other European markets with a flat open. Germany's DAX and France's CAC 40 are seen trading around 0.5% higher, while Italy's FTSE MIB is expected to add around 0.8%, according to data from IG.
Global markets trended higher on Tuesday despite oil prices rising above $100 per barrel on resurgent supply concerns amid the ongoing conflict between the U.S. and Iran.
President Donald Trump this week lambasted NATO allies for refusing to assist with efforts to protect ships attempting to travel through the Strait of Hormuz, but said in a Truth Social post on Tuesday that the U.S. did not need help.
Oil markets remain in focus; prices slipped overnight despite escalating attacks on the United Arab Emirates' energy infrastructure, as rising U.S. crude inventories helped offset rising geopolitical risk premiums.
Investors are now looking ahead to the Fed's interest rate decision expected later on Wednesday. Markets are expecting the central bank to keep interest rates unchanged in a range between 3.5% to 3.75%.
Traders will be watching for any guidance from Fed Chair Jerome Powell on whether oil prices could impact future monetary policy decisions.
In Europe, investors are looking ahead to EU inflation data due later in the session. It comes ahead of monetary policy decisions from the European Central Bank, Bank of England, Riksbank and Swiss National Bank on Thursday.
On Wednesday, earnings come from Tencent, Munich Re, and Eni.
— CNBC's Pia Singh and Lee Ying Shan contributed to this market report.
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