BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks look set to open on a cautious note Wednesday, with a softer dollar and plunging oil prices likely to keep investors nervous.
Gold hit over five-month high and the dollar index hovered near a one-week low as markets await dovish Fed talk.
The Federal Reserve is expected to raise interest rates for the fourth time this year later today, but the statement accompanying the rate decision is likely to be dovish amid rising risks to financial stability.
Meanwhile, the Bank of Japan and the Bank of England are unlikely to make significant changes when they review their monetary policies on Thursday.
Growth concerns also linger after data showed Japan's export growth slowed again in November due to weakening demand in China.
Asian stocks are trading mixed ahead of the Fed decision and the looming U.S. government shutdown threat.
The downside remained limited after U.S. Treasury Secretary Steven Mnuchin said that U.S.-China trade talks to expand on a tariff truce are planned for January.
U.S. oil prices rose slightly in Asian trade after plunging over 7 percent overnight on concerns about oversupply.
Overnight, U.S. stocks fluctuated before finishing modestly higher after two sessions of steep losses. The Dow rose 0.4 percent and the tech-heavy Nasdaq Composite inched up half a percent while the S&P 500 closed on a flat note.
European markets ended Tuesday's session lower amid global growth concerns. The pan-European Stoxx Europe 600 index gave up 0.8 percent.
The German DAX slipped 0.3 percent, France's CAC 40 shed 1 percent and the U.K.'s FTSE 100 dropped 1.1 percent.
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