Investing.com - European stocks edged lower on Wednesday, as markets were cautious ahead of the Federal Reserve's policy statement later in the day and after the announcement of a new round of sanctions against Russia.
During European morning trade, the DJ Euro Stoxx 50 edged down 0.11%, France’s CAC 40 shed 0.36%, while Germany’s DAX slipped 0.12%.
Investors were eyeing the Fed's upcoming policy statement as Chair Janet Yellen said earlier this month that rates could rise sooner if the recovery in the labor market continued.
On Monday, European leaders, along with the U.S. President Barack Obama, announced a fresh round of sanctions against Moscow, including penalties against the country's financial, defense and energy sectors.
These measures are in reaction to Russia's alleged involvement in the violence in eastern Ukraine and the downing of a passenger jet earlier in the month. Representatives from the European Union were set to meet again on Tuesday to reach a final deal on the sanctions.
Financial stocks were mostly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) gained 0.35% and 0.95%, although Germany's Deutsche Bank (XETRA:DBKGn) declined 0.52%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) advanced 0.91% and 0.95% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) rallied 0.73% and 1.33%.
Elsewhere, Bayer (XETRA:BAYGN) added 0.25% although the drugmaker said second-quarter earnings missed analyst estimates.
In London, commodity-heavy FTSE 100 dipped 0.04%, weighed by sharp losses in the mining sector.
Shares in Glencore Xstrata (LONDON:GLEN) dropped 0.76% and Rio Tinto (LONDON:RIO) tumbled 1.22%, while rivals Fresnillo (LONDON:FRES) and Antofagasta (LONDON:ANTO) plummeted 1.23% and 3.19% respectively.
In the financial sector, stocks were broadly higher. HSBC Holdings (LONDON:HSBA) inched up 0.02% and the Royal Bank of Scotland (LONDON:RBS) rose 0.38%, while Lloyds Banking (LONDON:LLOY) gained 0.46% and Barclays (LONDON:BARC) surged 3.06%.
Barclays earlier said its first-half profit declined 7% as earnings dropped at its investment bank.
Astrazeneca (LONDON:AZN) added to gains, up 0.91%, after the U.K. drugmaker agreed to buy the rights to Almirall's respiratory drugs for $875 million.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.18% rise, S&P 500 futures signaled a 0.19% gain, while the Nasdaq 100 futures indicated a 0.22% increase.