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European markets close higher ahead of Fed rate decision; Just Eat down 5%

Key Points
  • The Fed is widely expected to announce a rate hike, but investors will also be looking for clues on the path of interest rate rises this year.
  • The European Central Bank and Bank of Japan are holding meetings on Thursday and Friday this week, respectively.

European markets closed higher Wednesday afternoon, as investors waited for the latest monetary policy decision from the U.S. Federal Reserve.

European Markets: FTSE, GDAXI, FCHI, IBEX

The pan-European Stoxx 600 index closed 0.2 percent higher provisionally with most sectors finishing in positive territory.

Looking at individual stocks, the Paris airports operator ADP rose more than 5 percent after the government said it would prepare for a sale of some of the company's assets. The company was leading the gains in Europe. Meanwhile, Just Eat dropped around 5 percent after the rival company Deliveroo said it is to let restaurants use their own riders.

All eyes were on the Fed Wednesday, as the central bank concludes its two-day June meeting. The Fed is widely expected to announce a rate hike, but investors will also be looking for clues on the path of rate hikes this year. The Fed's monetary committee will release a statement and economic projections at 2 p.m. ET (7 p.m. London time), followed by a press conference.

The European Central Bank and Bank of Japan are holding meetings on Thursday and Friday this week, respectively.

US market edge higher

U.S. stocks inched upward Wednesday morning as Wall Street awaited the Federal Reserve's decision on monetary policy.

Investors are still assessing the historic meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un on Tuesday. Following the meeting, Trump's decision to halt U.S.-South Korea "war games" — military exercises designed to keep forces prepared and in practice — appears to have caught some Republican lawmakers off guard. Trump characterized the exercises as "provocative" and "tremendously expensive."

—CNBC's Sara Salinas and Alex Sherman contributed to this report.