The pan-European STOXX 600 index was steady at 541.98 points, as of 07.05 GMT.
Investors awaited the Fed’s monetary policy meeting, where interest rates are widely expected to remain unchanged, while comments from policymakers will be closely monitored to gauge how the U.S. central bank intends to navigate an uncertain trade environment.
U.S. President Donald Trump’s shifting tariff policy has caused turmoil in financial markets in recent months, with little progress on trade deals as the July 8 pause deadline approaches.
Adding to this uncertainty were tensions between Iran and Israel, after they launched new missile strikes at each other despite Trump calling for Tehran’s “unconditional surrender”.
In the regional market, the insurance sector and construction and material stocks led the gains, though overall advances were tempered by declines in heavyweight healthcare shares. Among stocks, Airbus gained 1.7% after the plane manufacturer raised the upper range of its dividend payout target ahead of a business update. Data showed that British inflation eased as expected in May, but is unlikely to influence the central bank’s decision later this week.
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