European Markets Plummet as Fed Decision Looms

European markets tumbled to multi-month lows on Tuesday as investors remained cautious ahead of the Federal Reserve's policy meeting. The STOXX 600 index, a benchmark for pan-European equities, fell 0.35%, its weakest performance in over three months. France's CAC 40 and Britain's FTSE 100 also posted losses, reaching their lowest levels in nearly four months.

Crude oil prices surged 1.2% to $113 per barrel after a pipeline attack in Saudi Arabia raised concerns about global energy supplies. The disruption could impact around 4% of worldwide oil supply, according to officials. Meanwhile, Houthi forces in Yemen conducted renewed attacks on Saudi infrastructure and Red Sea maritime routes.

The Federal Reserve's two-day policy meeting began on Tuesday, with financial markets assigning a 90% probability to a 25 basis point rate increase announcement on Wednesday. This would be the Fed's first rate hike since mid-2023. Market analysts emphasize that the critical question is not whether rates will rise but how Chairman Jerome Powell will guide subsequent policy actions.

In other news, OpenAI and Anthropic executives called for a temporary halt to cutting-edge AI development due to concerns about international risk management frameworks. Trustpilot shares plummeted over 18% after reporting a net loss in the first six months of 2026.