- Turkish central bank meets
- UK GDP rises in line with expectations
- US data out later as Fed meeting looms
FTSE 100: 0.38%
CAC 40: 0.63%
FTSE MIB: 0.77%
IBEX 35: 1.33%
Stoxx 600: 0.63%
European stocks edged up after Turkey's central bank governor raised expectations for an interest rate hike to fight rising inflation and a falling lira.
Erdem Basci vowed decisive action to address price instability ahead of the central bank's emergency meeting today.
He said he would tighten monetary policy if needed and denied he was under pressure from the government to keep a lid on interest rates.
Prime Minister Tayyip Erdogan has opposed higher borrowing costs, sometimes needed to bolster currencies, ahead of an election cycle starting in two months.
"In Turkey, politicians publicly criticise or praise central bank decisions [...] I don't think it threatens the bank's independence," Basci told a news conference to announce the bank's quarterly inflation report.
The lira strengthened against the dollar
following his remarks late on Monday, having touched a record low of 2.3900 on Monday morning.
The central bank meets today in an effort to halt the lira's steep decline.
UK GDP, US consumer confidence
The UK's Office for National Statistics said gross domestic product (GDP) expanded 0.7% quarter-on-quarter in the final three months of 2013 in its initial estimate, in line with forecasts. GDP rose 0.8% in the previous quarter.
"The preliminary estimate of Q4 GDP confirmed that the UK economy's recovery is becoming increasingly entrenched," according to Capital Economics.
"While risks remain, 2014 looks set for a further acceleration in growth."
The analysts expects GDP to expand by a 3% in 2014.
Later on, US consumer confidence figures will be released and the index for sentiment is anticipated to dip slightly to 78 in January from 78.1 in December.
Analysts predict another report on US durable goods will reveal an increase of 1.8% in December, compared to a rise of 3.4% a month earlier.
The data comes a day before the Federal Reserve announces its latest policy decision. Policymakers have been turning to data to gauge the health of the world's biggest economy as they weigh whether to introduce another round of monetary stimulus tapering.
The Fed began unwinding monthly bond purchases by $10bn to $75bn last month and is expected to cut a further $10bn tomorrow.
Siemens, F&C Asset Management
Siemens gained after reporting quarterly net profit that beat estimates.
Software AG was up after the Germany company forecast that earnings before interest and taxes (EBIT) may increase by as much as 10% in 2014.
Swedbank declined as the Swedish lender said net income fell 15% to 3.61bn kronor due to rising costs, missing analysts' estimates.
F&C Asset Management advanced after Bank of Montreal bought the owner of the UK's oldest investment fund for £708m.
STMicroelectronics dropped after the maker of semiconductors posted an unexpected loss for the last three months of 2013.
The euro was down 0.21% to $1.3644.
Brent crude futures rose $0.280 to $106.990 per barrel, according to the ICE.