Paris’s CAC 40 fell 0.4% to 7,787 on Wednesday, extending a broader pullback after a 1% drop in the previous session as investors parsed the latest euro area inflation print ahead of the US Federal Reserve’s policy decision later in the day. Euro area consumer price inflation eased to 2.0% in August, slightly below a preliminary 2.1% estimate as energy costs fell more than first reported. Headline inflation has now matched the European Central Bank’s 2% target for a third straight month and that has reinforced expectations that policy will remain on hold for some time. Markets are also focused on the Fed, which is widely expected to deliver a 25 basis point cut and on Chair Jerome Powell’s press conference for guidance on the path of future policy. Among individual stocks, gains came from BNP Paribas (-1.9%), Thales (-1.7%), TotalEnergies (-1.3%), and Safran (-1.4%).