This was CNBC's live blog covering European markets.

European markets closed mixed on Wednesday as investors awaited the latest monetary policy decision from the U.S. Federal Reserve.

The pan-European Stoxx 600 was up 0.02% at the end of the session as market movements remained subdued. Household goods fell 1.3%, while utilities stocks were up 1.1%.

Shares of luxury goods brands LVMH and Christian Dior and Hermes all fell more than 2% in early deals, with Burberry down 4.7%, after Kering issued a rare profit warning on declining Asia sales. Shares of Kering were down 12% after a delayed open.

U.K. inflation came in lower than expected at 3.4% year on year in February, official figures showed Wednesday, down from 4% in January.

The Fed is expected to keep rates unchanged as it concludes its two-day policy meeting. However, a recent slate of worrying inflation reports has investors concerned that the central bank could signal interest rates will remain higher for longer than expected.

U.S. stocks were flat in morning trade following a winning day for the major averages. Asia-Pacific markets rose as investors digested the Bank of Japan's landmark shift in monetary policy while awaiting the Fed's interest rate decision.

Europe stocks close mixed

European stocks closed mixed Wednesday, with the Stoxx 600 index nudging just 0.02% higher.

Major bourses were also spread between positive and negative territory, with Germany's DAX up 0.14% while France's CAC 40 dropped 0.5% amid a retreat in luxury stocks.

— Jenni Reid

BNP Paribas: Expect UK monetary policy to become ‘less tight,’ but not ‘easy’

Luigi Speranza, global head of Markets 360 and chief economist at BNP Paribas, discusses the latest U.K. inflation data and the challenges facing the Bank of England, as it prepares to cut interest rates later this year.

Raiffeisen plunges 15.5% on reported U.S. probe into Russia deal

Shares of Raiffeisen plunged more than 15.5% after reports that the U.S. is pressing the Austrian bank to abort plans to buy a 1.5 billion euro ($1.6 billion) industrial stake of a Russian tycoon.

Reuters reported Wednesday that Washington is probing the bank's purchase of a construction group said to be controlled by sanctioned oligarch Oleg Deripaska, citing several people with knowledge of the plans.

CNBC could not independently confirm the report.

The intervention piles more pressure on the Austrian bank, which handles billions of euros of international payments for Russians.

Raiffeisen did not immediately respond to CNBC's request for comment on the reports.

— Karen Gilchrist

Stocks on the move: Prudential down 6.5%, Investec up 3.5%

Shares of British insurance company Prudential fell 6.5% despite reporting a rise in 2023 full-year profits, which it said indicated progress in its strategic overhaul.

Meanwhile, British investment firm Investec rose 3.5% after hailing a solid year in 2023, with double-digit earnings growth.

— Karen Gilchrist

U.S. stocks little changed

U.S. stocks opened flat Wednesday as investors awaited the latest Federal Reserve policy decision.

The Dow Jones Industrial Average and the S&P 500 were little changed in early deals, while the Nasdaq fell 0.1%.

— Karen Gilchrist

Luxury stocks fall on Gucci profit warning; Kering down 14%

Shares of luxury goods brands LVMH, Christian Dior and Hermes all fell more than 2% in early deals, with Burberry down 4.7%, after Kering issued a rare profit warning on declining Asia sales. 

Shares of Kering plunged to the bottom of the Stoxx 600, down 14%, after a delayed open.

The French luxury house warned Tuesday that Gucci sales look set to fall 20% year on year in the first quarter, and that overall group revenues would fall 10%.

— Karen Gilchrist

UK inflation slides to 3.4%, below expectations

U.K. inflation came in lower than expected at 3.4% year-on-year in February, official figures showed Wednesday, down from 4% in January.

Month-on-month, the headline consumer price index rose by 0.6%, returning to positive territory after a -0.6% reading in January.

Economists polled by Reuters had expected an annual rate of 3.5% for February and a monthly rate of 0.7%, according to LSEG data.

— Elliot Smith

A bunch of analysts just hiked price targets for these 2 stocks, giving them over 65% upside

Eight analysts upgraded their target prices on two Canadian stocks in the past week, giving both more than 65% upside potential.

They were the only two companies on CNBC Pro's global stock screen that have received price target upgrades from five or more analysts in the past seven days, and also have potential upside of over 50%.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: UBS reveals highest conviction global stock picks to beat the market — giving one 90% upside

UBS has named its high conviction buy ideas across Europe and Asia.

And some if its buy recommendations are "poised to captivate and elevate" investors' portfolios, according to the bank.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets are set to open lower Wednesday.

The U.K.'s FTSE 100 index is expected to open 3 points lower at 7,732, Germany's DAX down 12 points at 17,977, France's CAC 60 points lower at 8,131 and Italy's FTSE MIB down 26 points at 33,370, according to data from IG. 

Prudential releases earnings Wednesday. U.K. inflation data for February is due to be released.

— Holly Ellyatt