European stocks rise but investors are cautious as Fed decision looms

On Wednesday, European stocks rose slightly after mixed earnings reports. However, the new wave of the coronavirus outbreak kept investors cautious while they also wait for the U.S. Federal Reserve’s announcement.

The Stoxx Europe 600 index XX (SXXP) slipped by 0.3% to 366.94 after gaining 0.4% on Tuesday.

The German DAX DX (DAX) and FTSE 100 index U.K. (UKX) fell by 0.2% while the French CAC 40 F.R. (PX1) rose by 0.3%.

“Global stock markets appear to be starting to get a little wobbly as the latest earnings numbers start to paint a picture of a global economy that could start to face a challenging time in the weeks and months ahead,” CMC Markets U.K.’s Chief Market Analyst Michael Hewson wrote in a letter.

“The resurgence of coronavirus cases that are starting to get reported across the world is prompting the realisation that hopes of a V-shaped recovery are starting to look like pie in the sky,” he added.