Europe close: Stocks edge up ahead of Fed rate decision
European shares were a tad higher on Wednesday as investors awaited the outcome of the Federal Reserve policy meeting and assessed news of a potential tie-up between two of Japan’s best known auto makers Honda and Nissan.
"Stock markets have found their footing after a mixed morning, but all eyes are on the Fed meeting tonight and the accompanying statement," said IG chief market analyst Chris Beauchamp.
"The first half of the month has seen US markets struggle, but there is still plenty of space for the usual second half rally to develop, should we avoid any nasty surprises from Powell and co tonight."
The pan-regional Stoxx 600 index was up 0.15% at 514.43 points.
Germany's Dax was the exception, dipping by 0.02% to 20,242.57, but stocks in France, Italy and Spain were all up by roughly a quarter of a percentage point.
Expectations from the Fed meeting were for a 25 basis point cut, but also an indication that policy makers will be more cautious with the pace of reductions over the next year.
In other economic news, UK inflation reached 2.6% in November, official data showed on Wednesday, the second consecutive monthly rise.
According to the Office for National Statistics, consumer price inflation rose in the 12 months to November to 2.6%, up from 2.3% in October. Largely in line with expectations, it was the highest print since March.
The Bank of England meets on Thursday with economists forecasting no change in rates.
Meanwhile in Japan, multiple media reports said the two auto giants were in exploratory talks to expand ties, including a potential merger. The two firms in March agreed to explore a strategic partnership for electric vehicles.
Shares in Renault, which owns around 23% of Nissan were up almost 5%.
Commerzbank gained 1% after Italian bank UniCredit said it had raised its potential stake in the German lender to 28% by signing new derivatives contracts.