CAC 40 Hits a Snag as Fed Decision Looms: Key Market Moves on September 17, 2025

• Why Did European Markets Dip Ahead of the Fed Meeting?
• How Did German Investor Sentiment Defy Expectations?
• Which Stocks Stole the Spotlight?
• What’s the Big Deal With Anglo American and Codelco’s Chile Plan?
• How Did Macro Data Shape the Day?
• Currency Watch: Euro Gains Ground
• FAQ: Your Burning Questions Answered

European markets closed lower ahead of the Fed's pivotal monetary policy decision, with the CAC 40 dropping 1% and the EuroStoxx 50 falling 1.26%. Investor sentiment in Germany improved, while BNP Paribas slid on its 2028 profitability roadmap. VusionGroup surged 13.68% after raising its annual outlook, and Exail Technologies tumbled 10.25% despite solid earnings. Meanwhile, Anglo American and Codelco finalized a joint copper mining plan in Chile, targeting 2.7M tons over 21 years. Industrial production in the eurozone edged up 0.3% in July, while the U.S. NAHB builder confidence index dipped to 32. The euro gained 0.61% to $1.1838.

Why Did European Markets Dip Ahead of the Fed Meeting?

European markets ended in the red on September 16, 2025, as investors braced for the Federal Reserve’s rate decision. The CAC 40 lost 1% to 7,818 points, snapping a six-session winning streak, while the EuroStoxx 50 fell 1.26% to 5,371. Analysts attribute the pullback to profit-taking and caution ahead of the Fed’s expected rate cut after a nine-month pause. "Markets are pricing in a dovish pivot, but traders aren’t taking chances," noted a BTCC analyst. Industrial production data offered a silver lining, with eurozone output rising 0.3% in July.

How Did German Investor Sentiment Defy Expectations?

Germany’s ZEW economic sentiment index jumped to 37.3 in September, smashing forecasts of 25.3 and up from August’s 34.7. The surprise rebound suggests Optimism about easing inflation and potential stimulus. "The ZEW reading hints at a turnaround, but let’s see if it translates to hard data," quipped one Frankfurt trader. Meanwhile, U.S. builder confidence slipped to 32, missing estimates.

Which Stocks Stole the Spotlight?

(+13.68% to €241) led France’s SBF 120 after hiking its 2025 targets. Despite a €9.7M H1 loss (vs. €24.4M loss YoY), its adjusted EBITDA soared 84% to €108.4M. Conversely,(-10.25% to €106.80) lagged despite strong earnings, as markets hoped for more. BNP Paribas dipped after unveiling its 2028 profitability roadmap—proof that even giants face scrutiny.

What’s the Big Deal With Anglo American and Codelco’s Chile Plan?

Anglo American (+0.63%) and Codelco inked a definitive pact for a joint mining operation at Chile’s Los Bronces and Andina copper sites. The 21-year project aims to unlock 2.7M tons of additional copper output post-2030 permits. "This is a long-game play for the green energy boom," remarked a metals strategist. Copper futures ticked up slightly on the news.

How Did Macro Data Shape the Day?

Eurozone industrial production ROSE 0.3% MoM in July (EU: +0.2%), rebounding from June’s -0.6% slump. Yearly output grew 1.8%. Stateside, U.S. industrial production eked out a 0.1% August gain after July’s 0.4% drop, defying forecasts of a 0.1% decline. Capacity utilization held at 77.4%.

Currency Watch: Euro Gains Ground

The euro climbed 0.61% to $1.1838 as the dollar softened pre-Fed. "The FX market’s betting on a Fed dovish surprise," said a BTCC currency desk source. bitcoin held steady near $28,000, with traders eyeing crypto correlations to risk assets.

FAQ: Your Burning Questions Answered

Why did the CAC 40 fall on September 16?

Profit-taking and Fed jitters drove the 1% drop, ending a six-day rally.

What’s driving VusionGroup’s rally?

Raised 2025 guidance and an 84% EBITDA jump fueled the 13.68% surge.

How significant is the Anglo-Codelco copper deal?

It’s a multi-decade play adding 2.7M tons of copper supply post-2030—key for EVs and renewables.