European Shares Stagnate Ahead of Crucial Fed Decision

European shares remained flat on Wednesday as investors awaited the U.S. Federal Reserve's interest rate decision. The STOXX 600 index saw a slight decrease, driven by dips in healthcare and technology shares. Britain's FTSE 100 also declined, influenced by stable UK inflation. All eyes are on the Fed's rate decision due later in the day.

European shares remained largely unchanged on Wednesday, as investors adopted a cautious approach ahead of a crucial interest rate decision by the U.S. Federal Reserve. The decision could potentially mark the beginning of a monetary easing cycle in the world's largest economy.

The pan-European STOXX 600 index slipped by 0.1% to 516.84 points as of 0710 GMT, weighed down by weakness in healthcare stocks. Reports indicating that Novo Nordisk's Ozempic may face imminent price cuts led to a near 2% drop in the Danish company's shares. Technology shares followed suit with a 0.5% decline, further pulling the markets down.

In the UK, the FTSE 100 fell by 0.5%, following news that headline inflation remained steady at 2.2% annually in August. However, price growth in the services sector, a key focus for the Bank of England, showed an uptick. The main focus of the day is the expected policy easing by the U.S. central bank, with a 63% probability of a 50-basis-point rate cut, as per CME's FedWatch Tool. Meanwhile, Reckitt Benckiser saw its shares rise by 2.3% after reports that the company has initiated early talks for a potential sale of its homecare assets, estimated to be worth over 6 billion pounds ($7.89 billion).

(With inputs from agencies.)