European markets show modest gains ahead of US Fed decision

European stock markets closed with moderate gains on Wednesday as investors awaited the US Federal Reserve's interest rate decision. Market sentiment was tempered by reports that the United States has requested several Arab Gulf states to prepare for a short, intensive military operation following the US midterm elections in November.

In the energy sector, Brent crude oil prices rose above $115 per barrel. The yield on the 10-year US benchmark bond increased slightly to approximately 5.01 percent. While the Fed is expected to maintain current interest rates, markets are pricing in a 90 percent probability of a rate hike in December.

Corporate earnings provided significant movement. Deutsche Bank reported third-quarter profits that exceeded market expectations despite a weaker investment banking division and increased risk provisions. In the technology sector, strong results from SK Hynix supported stocks, while investors look toward upcoming reports from Alphabet and Microsoft regarding AI investment trends. Other notable performers included Siemens Energy, Infineon, Aixtron, and ASML.