European stocks are seen opening largely unchanged on Wednesday, with trading activity likely to remain somewhat subdued amid caution ahead of Fed's policy decision and Chairman Ben Bernanke's accompanying press conference later today.
Asian stocks are trading mostly lower, with the markets in China and Hong Kong pacing the declines, as investors wait for Bernanke's clarifications on what the central bank will do for winding down its massive bond-buying program, known as quantitative easing, without endangering economic stability.
Japan's Nikkei index is rallying 1.9 percent after data showed Japan's exports rose more than expected in May, aided by Prime Minister Shinzo Abe's economic policies that resulted in the weakening of the yen.
A final communique issued after the annual G8 summit in Lough Erne, Northern Ireland, stated that world leaders have signed a declaration committing themselves to "fight the scourge of tax evasion" and press for a political solution via convening a Geneva II conference as soon as possible. The leaders of the major economies agreed on a plan to clamp down on money launderers, illegal tax evaders and corporate tax evaders. There was no timetable for talks or mention of Syrian President Bashar-al- Assad's future role.
Greek Finance Minister Yiannis Stournaras said that the country has made notable progress in negotiations with its international creditors on the next bailout installment. The twice-bailed out-euro member is now awaiting the next slice of loan installment from the troika.
In corporate news, British telecom giant Vodafone Group Plc has raised its preliminary offer for German cable operator Kabel Deutschland Holding AG to about 7.5 billion euros, or $10 billion, the Bloomberg reported, citing people familiar with the bid.
To avoid a showdown with safety regulators, automaker Chrysler has agreed to conduct a voluntary recall of 1.56 million 1993-2004 Jeep Grand Cherokee and 2002-07 Jeep Liberty vehicles for supplemental improvement in low-speed crashes.
French telecom-equipment maker Alcatel-Lucent has unveiled 'The Shift Plan', a detailed three-year plan to reposition the company as a specialist provider of IP Networking and Ultra-Broadband Access.
Rio Tinto Plc. has reportedly laid off senior employees at its Western Australian iron ore headquarters, as the global miner tries to cut costs amid lower commodity prices.
Aegon NV said it would detail the actions in progress across its businesses to deliver on its strategic transformation during its analyst & investor conference beginning later today in London.
European stocks ended Tuesday's session on a mixed note, as investors digested better-than-expected German investor sentiment data and waited for clarity on the future course of Fed policy. The German DAX rose 0.2 percent and the U.K.'s FTSE 100 advanced 0.7 percent, while France's CAC 40 slipped 0.1 percent and Switzerland's SMI dropped 0.4 percent.
The major U.S. averages rose about a percent each on Tuesday as soft inflation data suggested the Federal Reserve will maintain a status quo on interest rates. Housing starts rose 6.8 percent to an annual rate of 914,000 in May following a 14.8 percent drop in the previous month, while consumer prices rose slightly in the month following two months of declines, separate reports showed.
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