European stocks may open on a cautious note on Wednesday as investors avoid making significant moves ahead of the Fed announcement later in the day.
The Federal Reserve is expected to announce plans to begin gradually scaling back its $120 billion in monthly bond purchases by mid-November or December.
The language of the Fed’s statement is likely to be in focus amid greater concern over inflation and growing risks to growth.
Asian markets traded mixed even as a private survey showed China’s services sector activity expanded at a faster pace in October.
China’s economy is facing new downward pressure and it needs “cross-cyclical adjustments” to continue in a proper range, state broadcaster CCTV quoted Premier Li Keqiang as saying.
Nationwide house price data and final Purchasing Managers’ survey results from the U.K. are due later in the session, headlining a light day for the European economic news.
ECB President Lagarde will deliver a speech that could be market moving.
Across the Atlantic, the Fed announcement is likely to be in the spotlight along with reports on private sector employment, service sector activity and factory orders.
The latest U.S. jobs data, including non-farm payrolls, will be released on Friday.
The Bank of England announces its policy decision on Thursday, with think-tanks divided on which way the rate decision would go.
The dollar was moving in a relatively tight range. Oil prices fell as the U.S. increased pressure on OPEC+ to boost supplies and industry data pointed to a big build in crude oil and distillate stocks in the United States.
Gold edged lower while Bitcoin held around $63,000 amid a rally in cryptocurrencies.
U.S. stocks rose modestly to hit new record highs overnight as earnings optimism prevailed and the two-day FOMC meeting got underway.
The Dow and the S&P 500 rose around 0.4 percent each while the tech-heavy Nasdaq Composite gained 0.3 percent.
European markets ended higher on Tuesday despite weak Eurozone manufacturing data. The pan European Stoxx 600 edged up 0.1 percent.
The German DAX climbed 0.9 percent and France’s CAC 40 index added half a percent, while the U.K.’s FTSE 100 slid 0.2 percent, dragged down by miners.
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