Europe Stocks Post Third Day of Declines Before Fed Decision

(Bloomberg) -- European equities closed lower in a volatile session ahead of a key Federal Reserve policy decision.

The Stoxx Europe 600 Index closed down 0.4%, after swinging from gains of as much as 0.9% to losses of up to 0.7%. Travel and leisure and automakers -- among the best performers in the rally since mid-May -- were the worst on Wednesday, while energy shares also lagged behind the market.

Equities fell for a third day after surging to a three-month high on Friday amid additional economic stimulus measures. Investors are betting the Fed will maintain policy support for the U.S. recovery in the rate decision due after the European market close.

“The risk is still to the upside as economies keep re-opening more and more,” said Manish Singh, chief investment officer at Crossbridge Capital. “Remember the fiscal and monetary support will stay long after things have opened up. We might see a lull over summer months but Q3/Q4 is looking bright.”

Shares that rallied strongly from mid-May until last week were among the worst performers Wednesday. Tourism company TUI AG slid 7.7%.

Just Eat Takeaway.com NV tumbled 13% after confirming it’s in talks to buy U.S. meal delivery company Grubhub Inc.

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