European stocks were trading higher Wednesday ahead of the latest monetary policy decision from the U.S. Federal Reserve and better-than-expected U.K. economic data. The Stoxx Europe 600 index was trading 0.3 percent on Wednesday with most sectors in positive territory except for utilities, healthcare, chemicals and food and beverages. European markets are awaiting the latest decision from the Federal Open Market Committee which is scheduled to conclude its two-day meeting with its statement on monetary policy at 1400 ET. Traders do not expect the Fed to raise interest rates, but will watch for indications on the timing of the next hike. London's FTSE index was trading 0.3 percent higher to hit its highest level in nearly a year after preliminary second-quarter gross domestic product (GDP) for the U.K. beat expectations. The U.K. economy grew 0.6 percent quarter-on-quarter, above an expected 0.4 percent increase. Earnings were also in focus for investors. Germany's Deutsche Bank reported a 98 percent drop insecond-quarter net income from the same period last year, to 20 million euros ($22 million). Shares of the bank were down 4.4 percent Wednesday morning. Meanwhile, Spanish bank Santander reported a near 50 percent drop in second quarter net profit from the same quarter last year. However, shares of the bank were up 3.4 percent Wednesday. Norwegian energy giant Statoil also reported a slump in earnings and cut capital expenditure guidance, prompting its share price to fall 3 percent Wednesday morning. Shares of British chip designer ARM Holdings were flat on Wednesday despite the company, which earlier this month agreed to be bought by Japan's Softbank Group for $32 billion, reporting a 5 percent rise in second-quarter profit on Wednesday, Reuters reported. Shares of Taylor Wimpey were up 4.4 percent Wednesday after the British homebuilder said that the U.K.'s decision to leave the European Union had not impacted its earnings performance, yet. France's CAC index was up 1.5 percent on Wednesday, boosted by earnings releases from LVMH, PSA Peugeot and Airbus. Carmaker Peugeot reported record first-half profits on Wednesday, Reuters reported, with net income more than doubling to 1.21 billion euros from 571 million a year earlier. Its share price was up 7 percent Wednesday morning. Meanwhile in Asia, Japanese stocks rebounded from Tuesday's sell-off as most Asian markets wavered on Wednesday ahead of key central bank decisions as well as major earnings reports due in Japan and South Korea. In the U.S., the Democratic Party formally nominated Hillary Clinton for president Tuesday, making her the first woman chosen by a major American party. The former secretary of state and first lady secured the 2,383 delegates needed to win with South Dakota's vote. In U.S. business news, shares of Apple rose higher after hours as the company reported third-quarter iPhone sales that beat expectations. Meanwhile, Twitter revealed its worst quarterly revenue growth since its IPO. Shares of the social media site plunged over 11 percent in extended trade as a cautious outlook also disappointed investors. Source: CNBC
