Europe: Stocks dip at open, before Fed outcome

[LONDON] Europe's main stock markets fell slightly at the start of trading on Wednesday, with investors looking ahead to the outcome of the Federal Reserve's latest interest-rate meeting.

London's benchmark FTSE 100 index slipped 0.2 per cent to 7,236.93 points compared with the close on Tuesday.

In the eurozone, Frankfurt's DAX 30 eased just a few points to 12,502.36. On Tuesday, the index surpassed 12,500 for the first time.

At the open Wednesday, the Paris CAC 40 dipped 0.1 per cent to 5,299.74 points.

The Federal Reserve opened its two-day policy meeting on Tuesday amid signs of softening US inflation which eases the pressure to raise interest rates, at least for now.

The central bank is not expected to move the benchmark lending rate Wednesday from the current target range of 0.75 per cent to one per cent.

Most economists say the Fed likely will stay the course and hike interest rates twice more this year, probably in June and September, despite a weak batch of economic indicators since it last raised rates in March.

Ahead of the meeting, investors were digesting earnings updates from a number of leading European companies.

In Germany, Volkswagen confirmed its forecasts for 2017 after boosting revenue and profits in the first quarter, even as its emissions cheating scandal continues to make headlines.

AFP