European stocks mixed

On Wednesday European stocks fluctuated after a mixed session in Asia, most government bonds edged higher and the pound and euro gained against the dollar as investors count down to the Federal Reserve’s rate decision and press conference. Commodities looked more decisive, with oil rising alongside industrial metals.

The Stoxx Europe 600 Index was little changed as countryspecific benchmarks were mixed, and futures for the S&P 500 were also flat. Britain’s currency jumped as data showed U.K. retail sales rose more than forecast in August. Spanish assets showed resilience even as the government stepped up its crackdown on an illegal separatist referendum planned for the Catalonia region. The Mexican peso swung after a 7.2 magnitude earthquake struck. Benchmark crude rose, eventually managing to break $50 a barrel.

Financial markets largely remained calm, even after President Donald Trump used a UN speech to threaten to annihilate North Korea, as all eyes turned to Wednesday’s Fed decision. Expectations are high that the central bank of the world’s biggest economy will unveil plans to start shrinking its $4.5 trillion balance sheet, while any clues on the chances of a rate increase this year could tip the balance, market expectations of another hike in 2017 are at about 50 percent.

The Stoxx Europe 600 Index declined less than 0.05 percent as of 11:03 a.m. London time. The MSCI All-Country World Index jumped 0.1 percent to the highest on record. The U.K.’s FTSE 100 Index increased 0.1 percent. Germany’s DAX Index decreased less than 0.05 percent. The MSCI Emerging Market Index jumped 0.2 percent. Futures on the S&P 500 Index advanced less than 0.05 percent to the highest on record.

The Topix index ended the session in Tokyo almost flat at the highest since August 2015. The Japanese yen advanced 0.2 percent to 111.33 per dollar, the biggest gain in more than a week.