Eyes on Fed, BOJ and BoE
UK pay growth speeds up
Bunzl slides after profit warning

Dec 17 Reuters European shares fell to twoweek lows on Tuesday, led by energy and healthcare stocks, as investors awaited a slew of major central bank decisions later in the week.

The panEuropean STOXX 600 index slipped 0.4 by 0924 GMT, trading at its lowest since Dec. 2.

Oil and gas stocks dropped 1.2 as crude prices , nudged lower after China39;s economic data renewed demand concerns. Pharma stocks fell 1.1.

While the Federal Reserve is widely expected to deliver a 25basispoint interest rate cut on Wednesday, the focus will be the pace of easing next year as the U.S. economy appears to be on a steady footing. The Bank of Japan and the Bank of England39;s rate announcements are due on Thursday.

Weighing on global stocks, the 10year U.S. Treasury yield, the benchmark for global borrowing costs, touched its highest in more than three weeks at 4.41.

After Trump39;s election in 2016, the Fed reacted with more hawkish projections to factor in risks from higher fiscal spending. This is likely to happen again, with projections for 2025 cuts expected to be trimmed by one to two cuts, from previously four, said Gabriele Foa, portfolio manager at Algebris Investments.

The UK39;s FTSE 100 dropped 0.6 as the pound climbed after data showed British pay rose by more than expected in the three months to October, prompting investors to further rein in bets on rate cuts next year.

Traders…