The German stock market was expected to edge higher on Wednesday ahead of the US Federal Reserve's rate decision later that day, with the X-Dax out-of-hours indicator showing a 0.4% gain at 25,497 points as of one hour before the open.
The move would keep Germany's benchmark index above its 100-day moving average, a gauge commonly used to assess the medium- to long-term trend.
On Wall Street, late-session selling pressure eased on Tuesday, while most Asian markets posted modest gains. Slightly lower oil prices were also seen providing a moderate tailwind, though no significant breakthroughs have emerged in the Middle East conflict.
All eyes are on the Fed, which is widely expected to raise rates by nearly 94 percentage points on Wednesday, according to NordLB. The probability has strengthened after core US inflation came in above forecasts last week. The markets will be watching closely for signals from Fed leadership, with Federal Reserve chair Kevin Warsh set to address the press following the decision. President Donald Trump has long advocated for lower benchmark rates, adding uncertainty around the tone of the post-meeting commentary.
In company news, BMW shares rose 1.7% on the Tradegate platform after Berenberg upgraded the automaker from "hold" to "buy." Analyst Romain Gourvil noted that while structural headwinds in China persist, expectations had been reset lower following BMW's profit warning in June, providing a firmer foundation ahead of the Munich-based company's upcoming capital markets day. "The company remains fundamentally strong and appears to have passed the peak of its investment cycle," Gourvil wrote.
Meanwhile, wind-turbine maker Nordex received a 91-megawatt order from Teut Energieprojekte in Brandenburg. The stock climbed 0.2% on Tradegate.
