European markets open higher ahead of Fed decision

LONDON — European stocks opened slightly higher on Wednesday as global markets await the latest monetary policy figures and economic forecasts from the U.S. Federal Reserve.

The pan-European Stoxx 600 index was trading 1.7% higher Wednesday morning with all sectors in positive territory.

Global markets are broadly positive ahead of the conclusion of the Federal Reserve's two-day meeting on Wednesday, where the central bank is widely expected to raise rates by a quarter-point, the first hike since 2018.

Watchers are also expecting the central bank to offer a new quarterly forecast that could indicate five or six more hikes this year. The Fed is expected to announce an interest rate decision and economic projections at 2 p.m. ET on Wednesday, which will be followed by a briefing from Federal Reserve Chair Jerome Powell.

U.S. stock index futures were flat in overnight trading ahead of the meeting's outcome while shares in Asia-Pacific were mostly higher in Wednesday trade, though markets in mainland China were mixed amid the Covid resurgence in the country.

Russia's invasion of Ukraine continues to dominate global attention. The Russian state is due to pay $117 million in interest on two sovereign eurobonds on Wednesday, the first of four payment dates to creditors in March alone as the country faces the prospect of defaulting on its debt.

That comes after international sanctions on Russia's central bank have blocked off a substantial portion of the country's foreign exchange reserves following Russia's invasion of Ukraine.

Earnings in Europe come from Inditex, E.on and BMW on Wednesday and the IEA releases its latest oil market report.

— CNBC's Samantha Subin and Eustance Huang contributed to this market report.