European Markets React to Anticipated Inflation Data and Federal Reserve's Decision

As the European trading session commenced, major stock exchanges experienced a downturn. Investors are keenly awaiting the Eurostat's final report on euro area inflation for February, alongside the United States Federal Reserve's latest interest rate decision and economic projections.

DAX and Euro Stoxx 50 Lead the Decline

The DAX saw a significant drop of 0.75% at the opening, with Porsche shares falling by 1.40%. Similarly, the Euro Stoxx 50 decreased by 0.49%, impacted by BBVA Bank's 2.83% decline. The CAC 40 and FTSE 100 also opened lower, with notable losses in STMicroelectronics and Compass Group shares, respectively.

Currency Movements

In the currency markets, the euro and pound both fell against the dollar, reflecting the cautious stance of investors ahead of the key economic announcements.