Europe close: Stocks end higher amid earnings news; Fed in focus

European stocks ended higher on Wednesday as investors sifted through more earnings and eyed the latest policy announcement from the Federal Reserve.

The benchmark Stoxx Europe 600 index closed up 0.5% at 382.74, France's CAC 40 rose 0.6% to 5,190.17 and Germany's DAX finished up 0.3% at 12,305.11.

The Federal Reserve policy announcement is due at 1900 BST amid expectations there will be no change to interest rates.

FXTM research analyst Lukman Otunuga said markets will be paying very close attention to see if the policy statement offers any fresh details on how and when the Federal Reserve plans to normalise its $4.5 trillion balance sheet.

"Any unexpected surprises from the policy statement may come in the form of inflation concerns as the central bank acknowledges the fall in inflation and the impact it has on reaching their 2% inflation target," he said.

On the corporate front, Tullow Oil gushed higher as it said revenue rose but it swung to a pre-tax loss in the first half, with the numbers in line with expectations.

Peugeot pushed higher as it posted a 4.1% rise in first-half profit, while Swiss pharmaceutical company Lonza also racked up strong gains after better-than-expected second-quarter results.

Oil services company Subsea 7 ended a touch higher after stronger-than-expected second-quarter earnings and an upgrade to its revenue guidance for the year.

Going the other way, LafargeHolcim slipped after cutting its growth forecast for this year as second-quarter sales missed estimates and Daimler skidded lower despite reporting another quarter of record sales and revenue.

Chip maker ASM International slumped despite posting record second-quarter intake, while UniCredit edged down after announcing it has suffered a cyber attack on its Italian clients.

Earlier, data from Insee revealed that French consumer confidence unexpectedly fell sharply in July, with the composite indicator of confidence down to 104 from 108 versus expectations for no change and after gaining eight points over the two previous months.