European markets close higher as investors brace for latest Fed decision; Stoxx 600 up 1.7%

LONDON — European stocks closed higher on Wednesday as investors braced themselves for the latest monetary policy announcement from the U.S. Federal Reserve.

The pan-European Stoxx 600 provisionally ended up 1.7%, with oil and gas stocks jumping over 4% to lead gains as all sectors and major bourses entered positive territory

In terms of individual share price movement, Swiss computer software manufacturer Logitech as among the top performers, up 6% after receiving a series of buy and outperform ratings from analysts

At the bottom of the European blue chip index, French care home operator Orpea fell 19% as the stock continues to be hammered by allegations of mistreatment of residents, which the company denies

The positive trade for Europe comes after markets in the region closed higher on Tuesday, recouping some losses from Monday’s sharp sell-off as investors sifted through a fresh batch of corporate earnings.

On Wednesday, however, global investors are focused on the latest policy update from the Fed when its two-day meeting ends.

Essentially, market participants are eager to know when the central bank will raise interest rates and by how much. The Fed is expected to signal a rate hike as soon as March and more policy tightening on the table to address high inflation. An interest rate decision is slated for Wednesday at 2 p.m. ET

Asia markets traded mixed on Wednesday as investors awaited the Fed statement while U.S. stock futures rose sharply in early premarket trade, following another wild session on Wall Street

Geopolitical tension at the Russia-Ukraine border continued to dominate market concerns too. President Joe Biden spoke with European leaders Monday amid fears of a possible Russian invasion of Ukraine and on Tuesday, he said that he would consider imposing personal sanctions on Russian President Vladimir Putin if Russia attacked its neighbor