(Reuters) – European shares were flat on Wednesday, as investors stayed on the sidelines ahead of an all-important interest rate decision by the U.S. Federal Reserve that could mark the beginning of a monetary easing cycle in the world’s largest economy.
The pan-European STOXX 600 index was down 0.1% at 516.84 points, as of 0710 GMT, led by weakness in healthcare shares following reports that Novo Nordisk’s Ozempic is “very likely” to be one of the next drugs targeted for a price cut.
The Danish drugmaker’s shares were down nearly 2% in early trade.
Technology shares also pulled the markets down with a 0.5% fall.
Britain’s FTSE 100 slipped 0.5% after UK headline inflation stood at an annual rate of 2.2% in August, unchanged from July, but price growth in the services sector – closely watched by the Bank of England – picked up.
The day will be monopolised by the U.S. central bank’s expected start of policy easing, with the interest rate decision due at 1800 GMT. Money markets see a 63% chance of a 50-basis-point reduction, according to CME’s FedWatch Tool.
Among other movers, shares of Reckitt Benckiser advanced 2.3% following reports that the consumer goods giant launched early discussions with potential suitors for a sale of its homecare assets, which could be worth more than 6 billion pounds ($7.89 billion).
(Reporting by Shubham Batra in Bengaluru; Editing by Sherry Jacob-Phillips)
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