European stocks turn cautious ahead of BOJ, Fed

A cautious tone prevailed across the European markets, with the region’s indices trading modestly flat, after having opened on negative note this Tuesday.

The subdued trading activity seen around the European equities is largely driven by increasing nervousness as markets await the outcome of monetary policy of the BOJ and Fed due Wednesday.        

Moreover, a drop in the oil prices amid resurgence of supply glut concerns and technical selling, also added to the downbeat momentum around the stocks, weighing down on the energy sector stocks in particular. While investors continue to assess the valuations amid uncertainty over the central banks’ outcome.

Meanwhile, Germany's DAX 30 index rises +0.33% to 10,409, while the UK's FTSE 100 index trades +0.29% higher at 6,834. Among the other indices, the French CAC 40 index trades muted around 4,392, while the pan-European Euro Stoxx 50 index also trade little changed near 2,970 points.