European markets open lower as investors await monetary policy updates

European markets opened lower on Wednesday, as investors reacted to a historic policy reform in Germany and developments on a ceasefire in Ukraine, while awaiting key monetary policy updates.

The pan-European Stoxx 600 was 0.3% lower shortly after the opening bell, with almost every sector and all major bourses in negative territory. Germany’s DAX index led regional losses, shedding 0.5% during early deals.

That comes after German lawmakers voted on Tuesday to reform the country’s so-called debt brake rule, which will allow a greater national spend on defense and permit the creation of a 500 billion euro ($546 billion) climate and infrastructure fund.

A downward move in the DAX — home to Germany’s biggest companies — would end three consecutive days of gains for the index, which has added 17.4% since the beginning of the year.

European markets closed higher on Tuesday in the wake of Germany’s debt reform vote.