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European Shares Set to Pause as Fed Decision Looms

European stocks were set to pause on Tuesday after reaching a 2-month high in the previous session, as investors brace for the U.S. Federal Reserve rate decision and comment, expected
on Wednesday.

Bearish remarks by influential investor Warren Buffett, who said the U.S. economy could face a long and deep recession, could weigh on the market.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 2 and 3 points higher, the German DAX down 8 to up 2 points, and the French CAC 40 down 6 to up 1 point.

"We are expecting a cautious week in Europe and the US with investors looking to the central banks for guidance. The Fed's policy meetings look like they will have investors on edge, and as for the Euro zone, continued concerns on inflation and consumer confidence still remain," Oliver Stevens, head of dealing at IG Markets, wrote in a note.

The FTSEurofirst 300 index of top European shares gained 0.6 percent on Monday to close at 1,338.60 points, its highest finish since Feb. 27, propelled by financials on hopes writedowns will soon be left behind and miners on the back of higher metal prices.