Investing.com - European stocks opened broadly higher on Wednesday, as investors focused on the Federal Reserve’s policy decision due later in the day.
During European morning trade, the EURO STOXX 50 gained 0.42%, France’s CAC 40 advanced 0.44%, while Germany’s DAX 30 climbed 0.49%.
Investors were eyeing the conclusion of the Fed’s two day policy meeting later Wednesday, with most investors expecting no change given recent signs of weakness in the global economy.
But the U.S. central bank was likely to signal that rates will rise fairly soon as long as U.S. inflation and jobs continue to strengthen.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) gained 0.81% and 0.50%, while Germany’s Commerzbank (DE:CBKG) advanced 0.72%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) climbed 0.68% and 1.02% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) jumped 0.65% and 0.91%.
Elsewhere, Volkswagen (DE:VOWG_p) saw shares rally 1.05% even after a U.S. law firm said it plans to pursue claims of European customers harmed by the company’s emissions scandal.
CEZ a.s. (WA:CEZ) added to gains as it jumped 1.50%, recovering from the previous session’s losses after central Europe’s biggest power generator said profit will shrink by more than a third this year.
In London, FTSE 100 gained 0.43%, as investors looked to the U.K. Annual Budget Release due later in the day, as well as the Bank of England’s monthly policy decision on Thursday.
Mining stocks were broadly higher on the commodity-heavy index. Shares in Bhp Billiton (LON:BLT) and Rio Tinto (LON:RIO) advanced 1.44% and 1.51% respectively, while Glencore (LON:GLEN) jumped 1.85% and Anglo American (LON:AAL) surged 2.88%.
Meanwhile, financial stocks were mixed. Barclays (LON:BARC) edged up 0.12% and HSBC Holdings (LON:HSBA) rose 0.34%, while Lloyds Banking (LON:LLOY) slipped 0.14% and the Royal Bank of Scotland (LON:RBS) fell 0.26%.
Hikma Pharmaceuticals PLC (LON:HIK) was one of the worst performers on the index, with shares diving 6.16% after reporting a decline in pretax profit in 2015. However, the company forecast a significant rise in revenue for the year ahead.
In other news, Deutsche Boerse (DE:DB1Gn) announced a merger with the London Stock Exchange Group (LON:LSE) on Wednesday. The combined group is expected to maintain its headquarters in London and Frankfurt.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.10% gain, S&P 500 futures a 0.11% rise, while the Nasdaq 100 futures indicated a 0.15% increase.