European stock markets should hesitate before the Fed's announcements. The Eurostoxx 50 opened at 3,761.19 points (+0.77%), the CAC 40 at  6,476.18 points (+0.79%), the DAX 40 at 14,039.47 points (+0.72%), the FTSE 100 at 7,561.33 points (+0.22%), the SMI at 12,001.88 points (+0.25%), the DJIA at 33,128.79 points (+0.20%), the Nasdaq at 12,563.76 points (+0.22%), the S&P 500 at 4,175.48 points (+0.48%) and the Nikkei 225 at 26,818.53 points (-0.11%).
On the exchange rate side, the change from the close in New York indicates that EUR/USD stood at  1.0520 (0.00%), EUR/JPY at 136.89 (-0.01%) and USD/JPY at 130.13 (-0.01%).
Investors will be paying attention on Wednesday to the final figures of the services PMI in April. S&P Global's first estimate, released on April 22, showed the index rising to 58.8, its highest level in more than four years, from 57.4 in March. On the corporate side, Airbus, Solvay and CGG unveiled their first quarter results, while EDF and Maisons du Monde published their revenue for the same period. Air Liquide, ArcelorMittal and Aperam bring their shareholders together at a general meeting.
European equity markets are expected to open near balance on Wednesday, as investors hold their breath ahead of the Federal Reserve's (Fed) monetary policy decision, expected at 8:00 p.m. (Paris time). At 7:30 a.m., the CAC 40 futures contract gained 7.6 points, or 0.1%, according to data from broker IG Markets. The CONTRACT on the DAX 40 was up 2 points, or 0.01%, while the ftse 100 contract was up 11 points, or 0.15%.
The European Commission has submitted to European Union (EU) member states a draft of new sanctions against Russia, including a gradual embargo on Russian oil and the exclusion of new Russian banks from the Swift interbank system, according to European officials. The centrepiece of this new sanctions package, the draft oil embargo, provides for EU countries to stop importing crude from Russia within the next six months and to buy refined products by the end of the year, two people familiar with the matter told the Wall Street Journal.
On Tuesday night, Wall Street closed higher, supported by the announcement of a 2.2% increase in factory orders in March in the United States. The Dow Jones Index (DJIA) gained 0.2% to 33,128.79 points, and the broader S&P 500 Index rose 0.5% to 4,175.48 points. The Nasdaq Composite ended up 0.2% at 12,563.75 points. In Asia, the main stock exchanges are trading in scattered order on Wednesday. At the end of the session, the Hang Seng index gave up 1.3% in Hong Kong, while the Kospi in Seoul moved around equilibrium. Financial markets are closed in China and Japan, due to public holidays in these countries.

U.S. Treasury yields fell on Tuesday, with the exception of the two-year yield, which continued to rise on expectations of a tightening of the Fed's monetary policy in the near term. The increase in the two-year rate has led to a narrowing of the spread with the ten-year rate, which could raise concerns about the economic outlook.

The euro is little changed against the dollar on Wednesday morning, as markets are on hold ahead of the decision of the Fed's monetary policy committee. Given the aggressive market forecasts regarding the federal funds rate, there is a small risk that the Fed will be perceived as not being restrictive enough, which would lead to a slight decline in US interest rates and the dollar, says Joseph Capurso, Head of International Economics at CBA. He adds that the greenback is expected to move within a narrow range before the monetary policy decision.

Oil prices are gaining ground on Wednesday, as investors continue to assess the consequences of a European Union embargo on Russian crude and the prospects for weaker demand related to the health situation in China. At around 7:20 a.m., the July Contract for North Sea Brent gained $1.21 to $106.18 a barrel, and the June contract for Nymex-listed Light Sweet Crude (WTI) was $1.34 to $103.75 a barrel.