European stocks remain higher ahead of Fed meeting; Dax up 0.4%

Investing.com - European stocks edged mildly higher on Tuesday, as investors remained cautious ahead of the Federal Reserve's highly anticipated policy meeting due to begin later in the day.

During European afternoon trade, the EURO STOXX 50 rose 0.45%, France’s CAC 40 advanced 0.65%, while Germany’s DAX 30 tacked on 0.4%.

Markets were turning their attention to U.S. durable goods data due out later in the session as well as what will be a closely watch report on consumer confidence to gauge the strength of the economy.

Investors remained cautious ahead of the Fed’s highly anticipated policy meeting due to begin later Tuesday, with some expecting the central bank to cut its bond buying program to USD65 billion from the current USD75 billion.

The Fed announced its first cut to the USD85 billion in monthly bond purchases in December, citing an improving economy.

The Turkish central bank is also in focus ahead of an emergency meeting late tonight, when it's expected to raise rates following much volatility in the Turkish lira.

Financial stocks were broadly higher, as Italian lenders Unicredit and Intesa Sanpaolo rose 1.4% and 2.5% respectively, while France's BNP Paribas and Societe Generale advanced 2.8% and 2%.

On the downside, Philips saw shares drop 2.9% after CEO Frans van Houten said he is "cautious" heading into the new year, given a "softer order intake" in the fourth quarter amid uncertainty in emerging economies.

Elsewhere, in London, FTSE 100 inched up 0.3% after preliminary data released by the Office of National Statistics said the U.K. economy grew 0.7% in the final quarter of 2013, to record the fastest annual rate of growth since 2007.

Lenders boosted gains, with Lloyds Banking Group and Barclays rising 3.1% and 1.7% respectively, while Royal Bank of Scotland advanced 2.25%.

Miners were in demand after Nomura Holdings upgraded the sector. BHP Billiton and Rio Tinto rose 1.5% and 2.4% respectively, while Glencore Xstrata climbed 1%.

Meanwhile, across the Atlantic, U.S. equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.5% increase, S&P 500 futures signaled a 0.4% gain, while the Nasdaq 100 futures indicated a drop of 0.3%.

Nasdaq futures were under pressure following Apple’s disappointing fiscal first quarter earnings report released after markets closed Monday.

The tech giant said iPhone sales fell short of market expectations and the company's fiscal second quarter revenue guidance came in below consensus.