European markets closed flat on Wednesday as investors awaited the U.S. Federal Reserve's last monetary policy decision of the year.
After maintaining moderate gains for most of the session, the pan-European Stoxx 600 closed 0.01% lower. Chemical stocks led gains, up 1.13%, while telecoms stocks were down 1.27%.
European markets
The Fed is expected to hold its benchmark overnight borrowing rate in a range of 5.25% to 5.5%, but investors will be analyzing Fed Chair Jerome Powell's commentary for clues on how soon rate cuts can be expected. For now, the CME FedWatch Tool shows markets are pricing in odds of rate cuts beginning next spring.
Overnight, China stocks led declines among Asia-Pacific markets as investors digested Beijing's plan to lift domestic demand, ahead of the interest rate decision from the Fed. U.S. stocks were higher.Â
All three major indexes gained ground for a fourth straight day Tuesday as U.S. inflation came in as expected, with the consumer price index rising 3.1% year on year.