European stocks higher before Fed outcome
In foreign exchange trade, the euro slipped to $1.3922 from $1.3932 late on Tuesday in New York.
LONDON (AFP) - European stock markets traded mostly higher on Wednesday awaiting the outcome of the Fed s policy meeting, while investors kept a close watch over the Ukraine crisis.
But London s benchmark FTSE 100 index dipped 0.10 percent to 6,598.96 points around midday despite upbeat British unemployment data as investors sat tight before the coalition government s annual budget statement due at 1230 GMT.
The CAC 40 in Paris edged up 0.07 percent to 4,316.29 points, while Frankfurt s DAX 30 grew 0.46 percent to 9,285.24 compared with Tuesday s closing values.
Madrid s IBEX 35 index won 0.32 percent to 10,083.5 points.
European equities closed with solid gains on Tuesday as investors breathed a sigh of relief despite Russia annexing Crimea amid an outcry from the West.
"Today is a big day for the UK and the US; (British finance minister) George Osborne will reveal the budget... and the Federal Reserve will make its latest announcement, the latter having more of an impact to the markets," said David Madden, analyst at IG traders.
In the United States, the Federal Reserve is not expected to move off its current course of steadily tapering its stimulus programme following the end of its two-day meeting in Washington on Wednesday.
Investors are meanwhile hoping for some guidance from the US central bank s new head Janet Yellen on her plans for its key interest rate, which is not yet expected to be lifted from its current 0-0.25 percent, where it has been since late 2008.
Yellen will likely use her press conference "to announce that even if the unemployment rate falls below the previously set target of 6.5 percent, that the Fed will not raise rates and instead rely on other additional economic indicators to measure the strength of the economy", predicted Markus Huber, senior trader at brokers Peregrine & Black.
In foreign exchange trade, the euro slipped to $1.3922 from $1.3932 late on Tuesday in New York.
The euro dropped to 83.70 British pence from 83.98 on Tuesday, while the pound jumped to $1.6631 from $1.6587.
Britain also announced it was ditching the one pound coin it has used for the past three decades and replacing it with a 12-sided piece that will be harder to fake.
On the London Bullion Market meanwhile, the price of gold fell to $1,346 an ounce from $1,355.75 on Tuesday.
President Vladimir Putin addressed the Russian parliament on Tuesday and then signed a treaty with Crimean leaders bringing the strategic Black Sea peninsula into Russia.
Although Russia moved quickly to absorb Crimea, markets were reassured by Putin s statements that he doesn t want to split up Ukraine or sever ties with the West.
On the corporate front, shares in BMW surged 6.58 percent to 86.03 euros after the German top-of-the-range carmaker said it expects pre-tax profit to rise sharply this year after record sales and earnings in 2013.
