Investing.com - European stocks were mostly lower on Wednesday, as investors remained cautious ahead of the Federal Reserve’s policy statement due later in the day.
During European morning trade, the EURO STOXX 50 retreated 0.58%, France’s CAC 40 gained 0.74%, while Germany’s DAX 30 slid 0.52%.
The Fed is expected to keep interest rate on hold at the conclusion of its two-day policy meeting later Wednesday after raising interest rates for the first time in almost a decade in December.
Investors were looking to the Fed policy statement for any indication that the bank is considering slowing the path of interest rate increases this year after recent global financial market turmoil.
Investors also continued to focus on the oil market, after prices rose above $32 a barrel on Tuesday, but resumed their downward trend on Wednesday.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) slid 0.47% and 0.81%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) lost 0.14% and 1.13%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) retreated 0.30% and 1.08% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) declined 0.58% and 1.10%.
In earnings news, Novartis said fourth quarter earnings missed expectations, sending shares in the Swiss pharmaceutical giant down 3.65%.
Ericsson (ST:ERICAs) tumbled 1.39% even after the Swedish mobile network equipment maker reported a 68% year-on-year rise in net profit in the fourth quarter.
In London, commodity-heavy FTSE 100 dropped 0.54%, still weighed by sharp losses in the mining sector.
Shares in Glencore (L:GLEN) and Bhp Billiton (L:BLT) plummeted 2.24% and 2.34% respectively, while Anglo American (L:AAL) lost 2.84% and Antofagasta (L:ANTO) plunged 4.50%.
Financial stocks were also on the downside, as HSBC Holdings (L:HSBA) declined 0.75% and Barclays (L:BARC) retreated 1.75%, while Lloyds Banking (L:LLOY) plummeted 2.49% and the Royal Bank of Scotland (L:RBS) dove 3.49%.
Meanwhile, Royal Dutch Shell (L:RDSa) tumbled 1.55% as the company was set to hold a general meeting at which shareholders are expected to vote on the proposed takeover of BG.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.54% loss, S&P 500 futures a 0.73% drop, while the Nasdaq 100 futures indicated a 0.96% slide.