European Shares Set to Rise Ahead of Fed Decision


European shares are expected to rise on Tuesday ahead of a key interest rate decision from the Federal Reserve, while on the earnings front insurer Legal & General and German retailer Metro will be in focus.

Financial bookmakers expect Britain's FTSE 100 and France's CAC-40 to open up by as much as 1.6 percent, while Germany's DAX is expected to gain up to 1.5 percent in early trade.

U.S. stocks beyond the Dow Jones Industrial Average posted a modest loss on Monday as financial shares sank after JPMorgan agreed to buy Bear Stearns for a fraction of its former value, rescuing the investment bank from collapsing under the weight of heavy bets on mortgages.

In Asia outside Japan, most benchmark indexes fell.

The Fed is widely expected to deliver one of the steepest interest rates since 1982 after the European market close on Tuesday as it struggles to shore up the U.S. economy against further damage from the turmoil in the credit markets.