Europe's markets slip as investors wait on the Fed and big tech results

European equities have opened with mild losses, marking a more subdued tone at the start of trading, though the pullbacks are mostly limited across the region. With the Federal Reserve's rate decision and earnings from major technology companies still ahead, investors are exercising caution. Opening moves are as follows:

• Eurostoxx -0.1%
• Germany DAX -0.1%
• France CAC 40 -0.1%
• UK FTSE -0.3%
• Spain IBEX -1.1%
• Italy FTSE MIB -0.2%

Spain stands out as the weakest market in early action, with the IBEX slipping more than 1% as Banco Santander once again faces selling pressure. Beyond Spain, the retreats are relatively restrained, with European traders showing little appetite for risk before the big events on the agenda.

The Fed announcement is the standout item on today's calendar, even though the central bank is broadly seen holding interest rates steady. The key issue is what officials signal about December. With bond yields still high and inflation worries persisting, any unexpected hawkish tone could easily shake overall risk sentiment.

After Wall Street closes, Microsoft and Alphabet will release their quarterly figures. The two reports are likely to draw attention for what they say about the AI trade, especially whether continued strength in cloud and AI operations is enough to support the heavy investment spending under way.

Across Europe, focus will gradually turn toward the ECB's decision due tomorrow, with no rate change expected for now. Even so, bond-market developments will require investors' attention, particularly as questions about the December policy outlook remain unresolved.

All in all, the session has begun on a hesitant note. There is no shortage of possible catalysts, though, and investors are likely to hold their fire until the outlook becomes clearer.