Investing.com - European stocks opened higher on Wednesday, helped by gains in the energy sector due to a rally in oil prices, while investors awaited the Federal Reserve’s policy decision due later in the day.
During European morning trade, the EURO STOXX 50 rose 0.24%, France’s CAC 40 gained 0.45%, while Germany’s DAX 30 eased up 0.09%.
Investors were hoping that the Fed’s rate statement, due later Wednesday, will reveal more about policy plans for the second half of the year, with markets paying close attention to details of when and how the Fed will start reducing its $4.5 trillion balance sheet.
Investors also remained focused on the investigation into alleged links between U.S. President Donald Trump’s administration and Russia in last year’s election.
A rally in oil prices pushed energy-related stocks higher on Wednesday. Shares in French oil and gas major Total SA (PA:TOTF) gained 0.31% and Italy’s ENI (MI:ENI) advanced 0.83%, while Spanish rival Repsol (MC:REP) climbed 0.65%.
Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.51% and 0.63%, while Deutsche Bank (DE:DBKGn) advanced 0.83% and Commerzbank (DE:CBKG) slipped 0.14% in Germany.
Among peripheral lenders, Intesa Sanpaolo (MI:ISP) rose 0.21% and Unicredit (MI:CRDI) declined 0.59% in Italy, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) added 0.15% and 0.33%.
Elsewhere, Merck (NYSE:MRK) & Company Inc (MU:MRK) shares plummeted 2.21% after the drugmaker said Keytruda - a type of immuno-oncology (IO) drug known as a checkpoint inhibitor - failed to extend survival in previously treated patients with advanced head and neck cancer compared to the standard treatment.
On the upside, Volkswagen (DE:VOWG_p) saw shares rally 1.99% despite news Oliver Schmidt, former head of US environmental compliance at tbe company, plans to plead guilty for his role in the carmaker’s conspiracy to cheat on emissions tests.
In London, FTSE 100 climbed 0.45%, boosted by ITV (LON:ITV), whose shares surged 2.50% even after the TV giant reported lower earnings for the first half of the year, weighed by a decline at the ITV Studios production arm and a drop in advertising revenue.
Mining stocks added to gains on the commodity-heavy index. Shares in Glencore (LON:GLEN) rose 0.41% and BHP Billiton (LON:BLT) climbed 0.63%, while Rio Tinto (LON:RIO) advanced 0.88%.
In the financial sector, stocks were mixed. The Royal Bank of Scotland (LON:RBS) gained 0.66% and Barclays (LON:BARC) jumped 1.02%, while HSBC Holdings (LON:HSBA) slipped 0.25% and Lloyds Banking (LON:LLOY) dropped 0.81%.
Meanwhile, Sage Group (LON:SGE) saw shares dive 5.14% after the software company Sage Group agreed to purchase Intacct, a 19-year-old accounting software company, for $850 million.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.06% gain, S&P 500 futures signaled a 0.06% uptick, while the Nasdaq 100 futures indicated a flat open.