Investing.com - European stocks were mostly higher on Wednesday, after the release of mixed economic reports from the euro zone, as markets were awaited the Federal Reserve's highly-anticipated policy decision due later in the day
During European morning trade, the EURO STOXX 50 inched 0.04% higher, France’s CAC 40 dipped 0.03%, while Germany’s DAX 30 edged up 0.15%.
Research group Markit said its preliminary German manufacturing purchasing managers’ index inched up to 53.0 this month from a final reading of 52.9 in November, in line with expectations.
Meanwhile, Germany's preliminary services PMI dipped to 55.4 in December from 55.6 in the prior month. Analysts had expected the index to ease down to 55.5.
In France, the preliminary services PMI fell to 50.0 this month, an 11-month low. The reading came in below expectations for 50.8 and down from 51.0 in November.
However the French manufacturing PMI inched up to 51.6 this month, a 21-month high, beating expectations for 50.5 and up from 50.6 a month earlier.
Most investors expect the U.S. central bank to raise interest rates for the first time since June 2006 at the conclusion of its meeting on Wednesday.
With a rate hike priced in investors are now focusing on how quickly the Fed will tighten monetary policy in 2016. The Fed has indicated that the pace of rate hikes will be gradual.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) slid 0.38% and 0.46%, while Germany's Commerzbank (DE:CBKG) retreated 0.94%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 0.65% and 1.10% respectively. Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) overperformed, with shares rallying 1.17% and 1.39%.
Elsewhere, ArcelorMittal SA (AS:ISPA) shares were down 3.17% as news of CEO Paul O’Flaherty's resignation on Monday continued to weigh.
In London, FTSE 100 rose 0.21%, helped by Rolls-Royce (L:RR), whose shares jumped 1.21% following reports the luxury carmaker plans to cut its aerospace and land and sea divisions, leading to the early departure of the divisions' respective heads.
Mining stocks added to gains, as Fresnillo (L:FRES) added 0.38% and Rio Tinto (L:RIO) climbed 0.61%, while Bhp Billiton (L:BLT) surged 2.05%.
Pearson (L:PSON) was also on the upside, as shares soared 4.10% after the stock was upgraded by BNP Paribas from a "neutral" rating to an "outperform" rating.
In the financial sector, stocks were mixed. Shares in Lloyds Banking (L:LLOY) dipped 0.01% and Barclays (L:BARC) slipped 0.21%, while the Royal Bank of Scotland (L:RBS) rose 0.38% and HSBC Holdings (L:HSBA) advanced 0.70%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.20% rise, S&P 500 futures signaled a 0.20% gain, while the Nasdaq 100 futures indicated a 0.25% increase.