Federal Reserve Outlook Lifts European Bourses Midday

BY MT Newswires | ECONOMIC | 09/15/25 07:44 AM EDT

07:44 AM EDT, 09/15/2025 (MT Newswires) -- European bourses tracked moderately higher midday Monday as traders awaited the Wednesday rate decision from the US Federal Reserve and weighed developments in Russian and European Union relations.

Recent political turmoil in France was evidently shrugged off, with Paris exchanges logging gains.

Retail, bank and property stocks led broad rallies, although oil issues were flat.

Investors also eyed Wall Street futures modestly in the green, and mixed closes overnight on Asian exchanges.

In other news, Moscow issued a warning that expropriation of Russian financial assets frozen by European states would incur Russia wrath.

European Commission President Ursula von der Leyen has proposed that the European Union develop a mechanism to finance Ukraine's defense efforts using cash balances from Russian assets that have been frozen in Europe.

The pan-continental Stoxx Europe 600 Index was up 0.6% mid-session.

The Stoxx Europe 600 Technology Index was up 0.5%, and the Stoxx 600 Banks Index gained 1.1%.

The Stoxx Europe 600 Oil and Gas Index was steady, but the Stoxx 600 Europe Food and Beverage Index rose 0.3%.

The REITE, a European REIT index, rose 1.1%, while the Stoxx Europe 600 Retail Index was up 0.9%.

On the national market indexes, Germany's DAX was up 0.6%, and the FTSE 100 in London was flat. The CAC 40 in Paris was up 1.2%, and Spain's IBEX 35 gained 0.7%.

Yields on benchmark 10-year German bonds were lower, near 2.70%.

Front-month North Sea Brent crude oil futures were up 0.3% at $67.17 a barrel.

The Euro Stoxx 50 volatility index was up 1.4% to 15.61, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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