European stocks close higher as markets brace for more Fed action; Uniper down 26%

German arms manufacturer Rheinmetall continued its upward climb Wednesday afternoon, rising 9.7% to hit the top of the Stoxx 600.

It follows news Monday that Germany's armed forces have contracted with the company to buy a total of 48 fuel tank trucks for use at numerous German Army and Air Force airfields.

— Karen Gilchrist

U.S. stocks opened higher as investors looked ahead to a potential interest rate hike announcement from the Federal Reserve later Wednesday.

The Dow Jones Industrial Average was up 0.3% in early trade, while the S&P 500 was 0.4% higher. The Nasdaq was also up 0.2% at the start of trade.

— Karen Gilchrist

Shares of Finland's Fortum were up more than 9% by early afternoon, after the company agreed to sell its 56% stake in embattled German utility Uniper to the German government in a nationalization deal. Uniper shares plunged more than 34% in Frankfurt.

At the bottom of the Stoxx 600, Games Workshop shares fell more than 9% after the British wargame company issued a trading update.

- Elliot Smith

German automotive and arms manufacturer Rheinmetall was up 9.6% late morning, leading broad gains for defense firms after Russian President Vladimir Putin announced a partial military mobilization, an apparent escalation of tensions in the war in Ukraine.

Shares of Rheinmetall have been on a steady incline since Monday following the news that it won an order for vehicles for the German armed forces. 

Rheinmetall has been contracted to provide 48 fuel tank trucks for use at German Army and Air Force airfields.

— Hannah Ward-Glenton

Qatar airways' CEO H.E. Akbar Al Baker on Wednesday said that the airlines will continue flying to Russia as long as it is operationally safe to do so.

"We will continue to fly to Russia, we will continue to serve the people," he told CNBC's Hadley Gamble on Wednesday. "We are not a political institution. We are an industry that serves the common people."

The CEO said that China's Covid policies are "the smallest worry" for him, especially in contrast to the potential of the escalation of the Ukraine-Russia war, which he said could fuel inflation and put fewer "passengers in planes."

"Like every other airline that is still operating into Russia, we will continue to operate into Russia, as long as our operation into Russia is going to be safe," he said.

— Lee Ying Shan

Oil futures rose 3% after Russia's president, Vladimir Putin, said there would be a partial military mobilization in the country.

Brent crude futures rose 3.07% to $93.40 per barrel, and West Texas Intermediate futures added 3.13% to $86.57 per barrel.

— Abigail Ng

The Bank of England's Monetary Policy Committee will announce its latest decision on Thursday, with analysts divided over whether to expect a hike to interest rates of 50 or 75 basis points.

The Bank faces a crucial choice as it navigates a plunging currency and the effects of a new government energy cost package that has changed the inflation outlook.

The Bank hiked by 50 basis points last month, its largest single increase since 1995, but some analysts believe it will need to up the ante and keep pace with global peers to prevent a capitulation of the currency.

The pound fell to $1.1340 on Wednesday morning, its lowest since 1985.

Read more here.

- Elliot Smith

Shares of Finland's Fortum were up more than 9% by early afternoon, after the company agreed to sell its 56% stake in embattled German utility Uniper to the German government in a nationalization deal. Uniper shares plunged more than 34% in Frankfurt.

At the bottom of the Stoxx 600, Games Workshop shares fell more than 9% after the British wargame company issued a trading update.

- Elliot Smith

Russian President Vladimir Putin on Wednesday announced a partial military mobilization in Russia, putting the country's people and economy on a wartime footing as Moscow's invasion of Ukraine continues.

In a rare pre-recorded televised announcement, Putin said the West "wants to destroy our country" and claimed the West had tried to "turn Ukraine's people into cannon fodder," in comments translated by Reuters.

Putin said "mobilization events" would begin Wednesday without providing many further details, aside from saying that he had ordered an increase in funding to boost Russia's weapons production.

Read more here.

- Holly Ellyatt

The German government on Wednesday agreed to the nationalization of utility Uniper as it strives to keep the industry afloat in the wake of a worldwide energy crisis.

Having already accepted in July to bail out the major gas importer with a 15 billion euro ($14.95 billion) rescue deal, the state will now buy out the 56% stake of Finland's Fortum for a 0.5 billion euros. The German state is set to own around 98.5% of Uniper.

"Since the stabilisation package for Uniper was agreed in July, Uniper's situation has further deteriorated rapidly and significantly; as such, new measures to resolve the situation have been agreed," Fortum announced in a statement on Wednesday morning.

Read more here.

- Elliot Smith

Oil prices rose slightly after shedding in earlier trade on Wednesday ahead of an expected aggressive rate hike by the Federal Reserve.

Brent crude futures rose 0.23% to stand at $90.83 per barrel, while U.S. West Texas Intermediate also gained 0.17% to $84.10 per barrel.

"The U.S. Energy Information Administration expects oil output in the seven major U.S. oil and gas basins to lift modestly in September," Commonwealth Bank of Australia analyst Vivek Dhar wrote in a note.

— Lee Ying Shan

FedEx's bleak preliminary earnings and revised outlook sent stocks tumbling last week, but is it as bad as it looks?

CNBC Pro asked investment experts who weighed in on what the announcement means for the global economy and for investors.

Pro subscribers can read more here.

— Zavier Ong

European businesses in China increasingly face an environment in which "ideology trumps the economy," the European Union Chamber of Commerce in China said in its annual position paper released Wednesday.

Joerg Wuttke, president of the business group, said this year's Covid controls have turned China into a "closed" and "distinctively different" country that might prompt companies to leave.

Earlier this month, Chinese President Xi Jinping said the country has "continued to respond to Covid-19 and promote economic and social development in a well-coordinated way," according to a paraphrase of his remarks shared by China's Ministry of Foreign Affairs.

— Evelyn Cheng

As interest in battery stocks picks up after a tough year so far, CNBC Pro analyzed a number of stocks in the sector that analysts say have serious potential.

CNBC Pro screened the Global X Lithium & Battery Tech ETF on FactSet for stocks that could outperform. One stock that made the list has jumped over 40% this year so far, and analysts say it has further upside of more than 70%.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 32 points higher at 8,365, Germany's DAX up 25 points at 18,510, France's CAC 7 points higher at 8,143 and Italy's FTSE MIB up 59 points at 33,908, according to data from IG.

Earnings are due from Ferrovial, Telefonica, EDP, Enel, Pirelli and Salvatore Ferragamo.

— Holly Ellyatt