Luxury Stocks Push European Shares Lower

PARIS, France — Losses in luxury stocks dragged European shares lower on Wednesday, while investors remained wary of making big bets ahead of a widely expected interest rate cut by the US Federal Reserve.

Swiss luxury goods group Richemont fell nearly 5 percent, weighing the most on the pan-European STOXX 600 index, while Swatch declined 2.4 percent after a bearish note by UBS.

The benchmark European index dipped 0.1 percent, with Paris-listed shares lagging the most.

The Fed is due to release its policy statement at 2 pm EDT (1800 GMT), where it is expected to reduce US borrowing costs for the second time this year, despite deep divisions among policymakers about whether a cut is needed.

French utility EDF was the top gainer on STOXX 600, up almost 3 percent, after it said there was no need to close any of its nuclear reactors for now following the discovery of problems with weldings.

By Shreyashi Sanyal; editor: Saumyadeb Chakrabarty.