Muted Markets as Europe Awaits Key Fed Decision

Europe's STOXX 600 index remained largely unchanged on Wednesday as investors kept a close eye on the U.S. Federal Reserve's impending interest rate decision and sifted through a slew of corporate earnings updates. The index settled 0.1% lower after reaching an intraday record peak.

While markets in the UK and Spain closed at record highs, all eyes were on the widely anticipated 25-basis-point interest rate cut from the Fed, with Chair Jerome Powell's remarks expected to influence global market sentiment for the week. European banks surged, led by Santander's 4.3% rise on the back of robust quarterly profits, while Deutsche Bank climbed 5% amid profit gains.

In the commodities sector, mining and oil companies saw gains in response to rising metal and oil prices. Meanwhile, healthcare stocks received a lift from GSK's revised sales outlook. Market players are also gearing up for significant meetings between global leaders and pivotal policy announcements.