Orsted Shares Plunge 5.5% After Deeply Discounted $9.4B Capital Raise; European Markets Edge Higher

European stocks opened the week with modest gains on Monday as investors awaited the U.S. Federal Reserve’s highly anticipated meeting on Wednesday. London’s FTSE 100 rose 0.2%, Germany’s DAX gained 0.4%, and France’s CAC 40 added 0.3% in early trading, signaling cautious optimism across the region.

However, Danish wind energy giant Orsted faced a sharp setback, with shares tumbling more than 5% after announcing a major capital raise at a steep discount. The company revealed plans to issue new shares at 66.60 Danish kroner each—approximately 67% below its previous closing price of 200 kroner—raising 60 billion Danish kroner ($9.4 billion) to fund its renewable energy projects. Investors reacted negatively to the heavily discounted offer, sending the stock sharply lower.

This week, European investors are also watching key economic releases, including EU trade data. In the U.K., attention is focused on President Donald Trump’s state visit, which begins Tuesday evening. He and First Lady Melania Trump will meet King Charles and Queen Camilla at Windsor Castle on Wednesday before holding discussions with Prime Minister Keir Starmer on Thursday. Meanwhile, the U.K. inflation report is scheduled for release on Wednesday ahead of the Bank of England’s policy meeting on Thursday, though no rate cuts are currently expected.

Across the Atlantic, U.S. stock futures were relatively unchanged on Sunday night after the Nasdaq Composite closed Friday at a new record high. Investors are bracing for the Federal Reserve’s decision, with recent data showing a softening labor market and subdued inflation, fueling expectations that the central bank may cut interest rates. According to the CME FedWatch Tool, the market is pricing in a 96.2% probability of a 25-basis-point rate cut.

In Asia-Pacific markets, trading was mixed as global investors monitored U.S.-China trade talks in Madrid. Delegations led by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese officials, including Vice Premier He Lifeng, to discuss key trade, economic, and national security issues, including the TikTok divestment deadline and U.S. tariffs. Market participants are closely watching these discussions for signals on the future of global trade tensions.

source: cnbc