European Stocks Fall to Multi-Month Lows Ahead of Fed Rate Decision
TLDR
- European stock indexes dropped to multi-month lows on Tuesday
- Brent crude surged past $113 a barrel after attacks on Saudi pipeline infrastructure
- Markets are pricing a 90% chance the Fed raises rates by 25 basis points on Wednesday
- AI leaders at OpenAI and Anthropic called for a pause in advanced AI development
- Trustpilot fell over 18% after swinging to a net loss in the first half of 2026
European equity markets fell sharply on Tuesday, with major indexes sliding to their lowest levels in months. A mix of geopolitical tension, rising oil prices, and expectations of a Federal Reserve rate hike all weighed on investor sentiment.
The pan-European STOXX 600 dropped 0.35% to hit its lowest point in over three months. France’s CAC 40 fell 0.4% to a nearly four-month low, while the UK’s FTSE 100 and Germany’s DAX also declined.
Oil Prices Rise After Saudi Pipeline Attack
Energy costs were a key pressure point for European markets. Brent crude jumped 1.2% to trade above $113 a barrel, continuing a multi-week rally.
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