- Fed begins policy meeting
- US retail sales, consumer confidence
- Bank of Italy's Signorini on economic growth
FTSE 100: 0.54%
CAC 40: 0.43%
FTSE MIB: 1.52%
IBEX 35: 0.98%
Stoxx 600: 0.36%
European equities advanced on Tuesday as investors waited for the Federal Reserve's policy meeting to begin.
The Fed is expected to announce that it will maintain its $85bn in monthly asset purchases and keep the interest rate at 0.25% after the two-day meeting wraps up tomorrow.
Many economists don't see the central bank tapering stimulus until March 2014.
"I don't think investors are too concerned with the decision itself, given that the large majority are pricing in tapering in December at the very earliest," said Craig Erlam, Market Analyst at Alpari.
"There's a few reasons for this. The data has not been very good over the last few months, with the biggest disappointments coming from private sector hiring and housing."
US retail sales and consumer confidence figures released today will provide further insight into the health of the economy.
US advanced retail sales for September are expected to remain little changed, according to consensus.
Consumer confidence in the world's biggest economy, however, is tipped to fall in October. The index for consumer sentiment will drop to 75 this month from 79.7 in September, economists forecast.
French Statistics Institute - INSEE's - business confidence gauge for the month of October has come in at 85.0, versus economists forecasts for a reading of 86.0 and last month's print of 85.0.
Italy growth to be worse than government forecasts, says Signorini
Bank of Italy Director General, Luigi Signorini, has said the central bank expects growth will be worse this year and next than the government predicted last month.
Signorini said the central bank's July forecasts for gross domestic product (GDP) to drop 1.9% this year and expand 0.7% in 2014 have been confirmed by subsequent data.
His remarks come after European Central Bank Executive Board member Joerg Asmussen said Italy will "critically determine the fate of the euro-area" and Fitch Ratings affirmed Italy's BBB+ rating with a negative outlook.
rallied after the company reported that its third quarter loss narrowed thanks to job cuts and site closures.
BP gained after raising its dividend 5.6% to 9.5 cents as it reported third quarter earnings.
Deutsche Bank declined after reporting a fall in net income in the three months through September, missing analysts' estimates. It registered a 94% drop in third quarter income.
UBS slid as it said it probably won't be able to reach its profitability goal in 2015 after the Swiss regulator demanded the lender hold more capital for risks related to litigation.
Standard Chartered slumped after saying third-quarter revenue dropped due to weakness in its corporate-banking business.
Europe's largest tiremaker Michelin & Cie fell as sales in the third quarter dropped, falling short of analysts' forecasts.
Other asset classes slide
The euro fell 0.22% to $1.3755.
Brent crude futures dropped $0.597 to $108.960 per barrel on the ICE.