EUROPE MARKETS: Stoxx 600 Flirts With Three-week High

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- The Stoxx Europe 600 index headed for its highest closing level in three weeks on Wednesday as investors waited a statement from the U.S. Federal Open Market Committee.

European markets also rose on Tuesday, with several heavyweights advancing after they reported earnings.

Market reaction on Wednesday: The Stoxx Europe 600 index added 0.3% to 329.36, on track for its highest close since Oct. 7.

France's CAC 40 index rose 0.2% to 4,120.37, while Germany's DAX 30 index gained 0.5% to 9,111.09. The U.K.'s FTSE 100 index picked up 0.8% to 6,455.85.

FOMC meeting: On a quiet data day, Wednesday's highlight will be the decision from the Fed to end its bond-buying program. The Fed's statement is due after European markets close. Analysts widely expect the U.S. central bank will end its quantitative-easing program, and instead offer a dovish guidance on interest rates.

"Given the recent market turmoil, the Fed is likely to reiterate the 'considerable time' forward guidance and the 'significant under-utilization' description of the labor market," analysts at Danske Bank said in a note.

U.S. stock inched higher ahead of the decision.

Major movers: Fiat Chrysler Automobiles NV rallied 13% after the company it will spin off Ferrari SpA into a separate company and list a 10% stake on the market.

Total SA (TOT) rose 2.4% after posting earnings ahead of expectations and declared a dividend of 0.61 euros a share, a 3.4% increase from the same quarter last year.

On a more downbeat note, shares of Fugro NV sank 26% after the Dutch oil-field-services company warned that results for the second half of the year would be significantly below expectations. (Read more on European stock moves http://www.marketwatch.com/story/sanofi-slumps-total-rises-europes-big-stock-movers-2014-10-29.)

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