Investing.com - European stock markets pared earlier gains to fall into the red on Wednesday, as the effects of Turkey’s aggressive monetary policy move appeared to abate.
During European afternoon trade, the EURO STOXX 50 inched down 0.4%, France’s CAC 40 shed 0.5%, while Germany’s DAX 30 dipped 0.2%.
European markets rallied more than 1% after the open after an aggressive rate hike from the Turkish central bank eased concerns over volatility in emerging markets.
But those gains faded away as market players prepared for the outcome of the Federal Reserve’s policy meeting later in the day, amid expectations for a USD10 billion reduction in the central bank’s now USD75-billion-a-month stimulus program.
The policy meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over. The central bank announced its first cut to its USD85 billion in monthly bond purchases in December, citing an improving economy.
Elsewhere, in London, the FTSE 100 turned 0.3% lower after rising nearly 1% after the open.
Shares of J. Sainsbury declined 1.6%after the supermarket chain said its Chief Executive Justin King has decided to step down and will be replaced by Mike Coupe.
Meanwhile, across the Atlantic, U.S. equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a loss of 0.3%, S&P 500 futures signaled a 0.3% decline, while the Nasdaq 100 futures indicated a drop of 0.15%.