Europe: Equity markets flat before Fed meeting

[LONDON] Europe's main stock markets flatlined on Wednesday, before the outcome of a critical US monetary policy meeting.

The US Federal Reserve is expected to announce plans to begin tapering its stimulus as the world's biggest economy recovers.

In initial trade, London's benchmark FTSE 100 index dipped just 0.1 per cent to 7,265.57 points on the eve of an interest rate call from the Bank of England.

In the eurozone, Frankfurt's DAX index was flat at 15,952.17 points and the Paris CAC 40 was up a fraction at 6,929.25.

"If there is no sign of stress across... markets, it's mostly because we all think we know what will come out from today's (Fed) meeting: a gradual start of the tapering of the bond purchases programme," said SwissQuote analyst Ipek Ozkardeskaya.

Meanwhile, the BoE is expected on Thursday to raise its interest rate for the first time in more than three years to help combat soaring inflation.

AFP