European markets are expected to open in mixed territory on Wednesday, as investors await the latest monetary policy decision from the U.S. Federal Reserve.

The U.K.’s FTSE is seen opening 11 points lower at 7,699, the German DAX is seen 12 points higher at 12,852 and the CAC is expected to open 1 point lower at 5,450.

All eyes are on the Fed on Wednesday, as the central bank concludes its two-day June meeting. The Fed is widely expected to announce a rate hike, but investors will also be looking for clues on the path of rate hikes this year. The Fed’s monetary committee will release a statement and economic projections at 2 p.m. ET (7 p.m. BST), followed by a press conference.

The European Central Bank and Bank of Japan are holding meetings on Thursday and Friday this week, respectively.

Investors are still assessing the historic meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un on Tuesday. Following the meeting, Trump’s decision to halt U.S.-South Korea “war games” —military exercises designed to keep forces prepared and in practice — appears to have caught some Republican lawmakers off guard. Trump characterized the exercises as “provocative” and “tremendously expensive.”

In corporate news, AT&T’s $85.4 billion purchase of Time Warner was ruled legal by a federal judge on Tuesday, clearing the path for a deal that gives the communications giant ownership of cable channels such as HBO and CNN as well as film studio Warner Bros. U.S. District Court Judge Richard Leon did not impose conditions on the merger’s approval.

It is expected that Comcast, CNBC’s parent company, will formalize on Wednesday its all-cash bid for Fox’s assets, which include cable networks, 39 percent of British satellite TV provider Sky, and Indian media conglomerate Star, according to people familiar with the matter.

In the U.K., Prime Minister Theresa May has fended off a rebellion in parliament over amendments to a bill for the country’s exit from the European Union next year that had threatened to undermine her authority, Reuters reported.

Earnings come from retailer Inditex and luxury fashion group Mulberry Group, while global advertising company WPP is holding an annual general meeting.

-CNBC’s Sara Salinas and Alex Sherman contributed to this report.

Source: cnbc
European markets lack direction ahead of Fed's rate decision