(Reuters) – European shares inched higher on Wednesday ahead of the U.S. Federal Reserve’s policy decision that is likely to signal a quicker withdrawal of its pandemic stimulus measures to counter broadening inflationary risks.
The pan-European STOXX 600 was up 0.5% at 471.84 points, as of 0831 GMT. Stock markets across Asia skidded as China’s weaker-than-expected retail sales in November dented sentiment.
Tech, utility, and auto sectors supported the index, while miners and energy stocks dropped.
Among individual companies, shares of Generali rose 1.3% after Italy’s top insurer pledged to return up to 6.1 billion euros ($6.88 billion) in dividends and buybacks to shareholders as Chief Executive Officer Philippe Donnet presented a new strategy.
The top performer on the benchmark was support services provider DCC, which jumped 5.8%, after announcing its acquisition of Almo Corp for about $610 million and receiving a price target raise at J.P.Morgan.
Shares of IAG, British Airways’ parent company, dropped 1% after saying it is in advanced talks to cancel its acquisition of rival Air Europa from Spanish company Globalia.
($1 = 0.8872 euros)
(Reporting by Anisha Sircar in Bengaluru; Editing by Sherry Jacob-Phillips)
