European markets set to open mixed ahead of Federal Reserve meeting

Big 5
European markets were set to open mixed on Wednesday morning, as investors observed heightened geopolitical tensions over the Korean Peninsula and awaited monetary policy guidance from the Federal Reserve.

Britain’s FTSE 100 is poised to open 5 points higher at 7,276; the German Dax is expected to open down by around 15 points at 12,545 while the French CAC is set to open 4 points lower at 5,228.

Asian stocks were little changed on Wednesday as appetite for riskier assets cooled ahead of the Federal Open Market Committee meeting later in the day. Most moves in Asia were within the 0.5 percent range of Tuesday’s close.

The U.S. central bank is due to announce its decision at 2 p.m. ET on Wednesday. The Fed is expected to keep interest rates unchanged after its two-day meeting while many analysts have suggested it could announce plans to begin unwinding its $4.5 trillion balance sheet.

On Tuesday, President Donald Trump issued a harsh warning at the United Nations General Assembly to North Korea, saying he may be forced to “totally destroy” the isolated regime unless Pyongyang backs down from its nuclear challenge.

On the earnings front, Kingfisher and Inditex release their latest figures on Wednesday.

Source: CNBC