By Peter Nurse 

- European stock markets are expected to open higher Wednesday, continuing the recent positive trend ahead of the conclusion of the crucial Federal Reserve policy-setting meeting.

At 03:05 ET (07:05 GMT), the contract in Germany traded 0.4% higher, in France climbed 0.4% and the contract in the U.K. rose 0.2%.

All eyes are on the as it winds up its two-day monetary policy meeting later in the session. The Fed policymakers are widely expected to agree to raise interest rates by 75 basis points, the fourth consecutive increase of this size.

Equity markets have been gaining over the last few days on increased confidence that Fed Chair Jerome Powell will hint, at his subsequent press conference, at the central bank going slow with further rate hikes, suggesting that the December increase will be of a smaller magnitude.

That said, the central bank could easily stick to its aggressive tightening path as a result of the still-tight labor market and lack of any signs of an easing in core inflation.

Back in Europe, the raised interest rates by 75 basis points last week as it battles inflation which increased by a record 10.7% last month from 9.9% a month earlier even amid signs the Eurozone is heading towards recession.

data for October are due later in the session, along with , and these numbers are expected to provide further evidence of this economic slowdown. 

In the corporate sector, the spotlight will be on GSK (LON:), with the pharma giant set to release its latest quarterly results.

Elsewhere, French catering and food services group Sodexo (EPA:) on Wednesday forecast organic revenue growth of between 6% and 8% for fiscal years 2024-2025 and a margin above 6% in 2025.

Oil prices rose Tuesday, adding to the previous session’s gains, helped by a surprise drop in U.S. crude inventories, suggesting demand is persisting in the world’s largest crude consumer despite soaring and rising interest rates.

Data from the showed that U.S. crude stockpiles fell by a hefty 6.5 million barrels last week, an eye-opener after the prior week’s build of 4.5 million barrels.

Official data from the is due later in the session for confirmation.

By 03:05 ET, traded 1.1% higher at $89.30 a barrel, while the contract rose 0.9% to $95.50. 

Both benchmarks climbed around 2% on Tuesday following a report that the Chinese government was considering forming a committee to consider ways to relax its restrictive COVID rules, potentially boosting demand in the world's largest oil importer. 

Additionally, rose 0.3% to $1,655.25/oz, while traded 0.1% higher at 0.9877.