Europe open: Markets cautious with eyes on Iran war, Fed rate call

17th Jun 2026 08:08

(Sharecast News) - European shares opened slightly higher on Wednesday as investors eyed the latest developments on the US-Iran peace deal and looked ahead to an interest rate decision from the US Federal Reserve.

The pan-regional Stoxx 600 index was up 0.08% at 636 at 0815 BST. Major bourses were mixed with the UK's FTSE flat after official data showed inflation held steady last month despite rising prices caused by the war. Economists had expected a rise to 3%.

Germany's DAX fell 0.34% and France's CAC 40 edged ahead by 0.03%.

The Federal Open Market Committee meeting is the first under new chair Kevin Warsh with economists forecasting policymakers will hold rates at their target range of 3.5% to 3.75%, despite rising energy prices caused by US President Donald Trump's war of choice on Iran.

Oil prices slipped further as the peace deal appeared to be holding even as Israel continued to bomb Lebanon - a red line for Tehran.

Brent crude was down 1.10% to $78.09 and West Texas Intermediate fell 1.29% to $75.07.

In equity news, shares in Auto1 Group surged as the online used car retailer confirmed 2026 guidance.

BMW slumped as the German auto giant slashed guidance due to a weaker Chinese market and the Iran war.

Reporting by Frank Prenesti for Sharecast.com