Eurozone Stocks End Slightly Down Amid Fed Decision Prep

European equity markets experienced modest declines on Tuesday, the day before the Federal Reserve’s decision on interest rates. While oil prices surged recently, the selling pressure remained contained, with the Euro Stoxx 50 Index closing with a loss of 0.38 percent at 6,236.50 points. The index had briefly dipped to its lowest level since July. Outside the Eurozone, the Swiss SMI fell 0.50 percent to 13,808.87 points, and the UK’s FTSE 100 Index declined 0.37 percent to 10,658.13 points. Both indices had shown resilience at the start of the week. The market’s focus remained on the Fed’s potential 0.25 percentage-point hike, which analysts widely expected, given prior moves by the European Central Bank. The 10-year U.S. Treasury yield reached 5 percent, a level that posed a significant headwind for equities, as noted by Jürgen Molnar, a capital markets strategist at RoboMarkets. "The oil price remains persistently high, but the 10-year Treasury yield hitting 5 percent is a major drag on stocks," he said. Within the broader Stoxx Europe 600 Index, financial sector stocks were the worst performers, with financial intermediaries and exchange operators losing 3.4 percent. Concerns over regulatory risks and broader sector weakness were cited. Luxury goods companies also underperformed, with losses ranging from 1.9 percent to 2.8 percent for brands such as Hermes, LVMH, and Richemont. These declines were linked to weaker Chinese consumer data, including a below-expected rise in August retail sales, reflecting sluggish domestic demand.