This is CNBC's live blog covering European markets.

European markets closed flat on Wednesday as investors awaited the U.S. Federal Reserve's last monetary policy decision of the year.

After maintaining moderate gains for most of the session, the pan-European Stoxx 600 closed 0.01% lower. Chemical stocks led gains, up 1.13%, while telecoms stocks were down 1.27%.

The Fed is expected to hold its benchmark overnight borrowing rate in a range of 5.25% to 5.5%, but investors will be analyzing Fed Chair Jerome Powell's commentary for clues on how soon rate cuts can be expected. For now, the CME FedWatch Tool shows markets are pricing in odds of rate cuts beginning next spring.

Overnight, China stocks led declines among Asia-Pacific markets as investors digested Beijing's plan to lift domestic demand, ahead of the interest rate decision from the Fed. U.S. stocks were higher. 

All three major indexes gained ground for a fourth straight day Tuesday as U.S. inflation came in as expected, with the consumer price index rising 3.1% year on year.

Expect European stocks to outperform U.S. in first half of 2024, Deutsche Bank strategist says

Maximilian Uleer, head of European equity and cross asset strategy at Deutsche Bank, discusses market opportunities in the coming year.

U.S. stocks open little changed

U.S. stocks moved little on Wednesday, with investors preparing for the last Federal Reserve policy decision of 2023.

The Dow Jones Industrial Average hovered near the flatline, while the S&P 500 ticked up 0.06%. The Nasdaq Composite 0.3%.

— Brian Evans

U.S. wholesale inflation was unchanged in November, PPI shows

U.S. wholesale prices were unchanged in November, providing another piece of positive inflation news, according to a Labor Department report Wednesday.

The producer price index was unchanged for the month, against the Dow Jones estimate for a 0.1% increase. Excluding food and energy, the index also was flat versus the forecast for a 0.2% increase. Excluding food, energy and trade services, the PPI rose 0.1%.

On a year over year basis, the headline index was up just 0.9%; excluding food, energy and trade, it increased 2.5%.

— Jeff Cox

Bank of England poised to hold interest rates steady

The Bank of England is all but certain to keep its main interest rate unchanged at 5.25% for a third consecutive meeting on Thursday, but economists are split over when to expect the first cut next year.

The market is pricing an almost 100% chance of a hold on Thursday, according to LSEG, with economic data since the Bank's last meeting proving largely inconclusive.

— Elliot Smith

Stocks on the move: Solvay up 6.5%, Nel down 11%

Chemicals company Solvay jumped to the stock of the Stoxx 600, rising 6.5%, after shareholders approved the spinoff of its new plastics business, Syensqo.

Gambling group Entain also rose 3.5% on the news that chief executive Jette Nygaard-Andersen was stepping down just days after the company settled a bribery probe with U.K. authorities.

Norwegian hydrogen business Nel sank to the bottom of the European benchmark, down 10.8%, after announcing plans to sell its interest in Danish green hydrogen producer Everfuel.

— Karen Gilchrist

European markets open mixed

European stocks made a muted start to Wednesday's session.

The pan-European Stoxx 600 opened flat, with sectors trading in mixed territory. Chemical stocks led gains, up 0.8%, while oil and gas stocks were down 0.7%.

— Karen Gilchrist

UK economy shrinks 0.3% in October

The U.K. economy contracted 0.3% in October, with the country's services, production and construction sectors all shrinking, new data from the Office for National Statistics showed Wednesday.

The monthly dip follows growth of 0.2% in September and is worse than the 0% change economists had predicted.

— Karen Gilchrist

Zara owner Inditex reports 32.5% jump in profits

Spanish clothes retailer Inditex on Wednesday reported a 32.5% jump in net profits in the nine months from February to October, even as sales growth slowed from the year prior.

The fast fashion giant behind high street brands such as Zara said its net profit rose to 4.1 billion euros ($4.42 billion), in line with analysts' expectations.

— Karen Gilchrist

Fed’s big rate policy decision looms. Here’s what to expect on Wednesday

The Federal Reserve is widely expected to hold steady on interest rates when its two-day meeting concludes at 2 p.m. ET.

The real action – and potential market mover – will be how central bank policymakers proceed from here and whether its messaging will hold any clues on the next steps for rates.

Economists and traders will have an eye out for the central bank's statement, which should have the details on how the Federal Open Market Committee is perceiving the state of employment, inflation and economic growth.

This time, the Fed will also issue its dot plot, a grid of members' projections for the fed funds rate. This is where market participants might get some insight on where policymakers stand on the expected timing of cuts.

Fed Chair Powell's press conference, which traders will watch closely, will also offer additional context on the Fed's decision – as well as where policy may go from here. The event could be a market-moving one.

Read more about the Fed's big decision here.

-Darla Mercado, Jeff Cox

CNBC Pro: Morgan Stanley says "buy the dip" in these global growth stocks into the year-end

Morgan Stanley has advised clients to get ahead of the next market cycle by buying shares of high-quality growth companies in Asia and emerging markets (EM).

"We believe the market is now in transition to a new cycle that would favor Growth over Value," the Wall Street bank's strategists, including Gilbert Wong, said in a note to clients on Dec. 11. "Our suggested strategy is to buy the dip on Quality Growth stocks in [Asia Pacific region excluding Japan, and EM]."

CNBC Pro subscribers can read more about Morgan Stanley's stock picks here.

— Ganesh Rao

The Federal Reserve will begin interest rate cuts in mid 2024, CNBC survey finds

Respondents to the latest CNBC Fed Survey expect the central bank to begin cutting interest rates in the middle of next year and are more optimistic on the likelihood of a soft landing.

More than half of the 35 economists, strategists and analysts polled by CNBC expect June to be the first month of Fed cuts, while 69% expect another cut in July. The average forecast from respondents calls for roughly 85 basis points of interest rate cuts in 2024.

Meanwhile, soft landing expectations also climbed in the December survey compared to a month earlier. Respondents increased the probability of soft landing to 47%, a basis point increase from November, while trimming the odds of a recession in 2024 by 8 basis points to 41%.

— Brian Evans

CNBC Pro: 'Large and very profitable': Analysts like this biotech stock and give it major upside

The biotechnology sector has finally picked up steam after a tough 2022 — and one under-the-radar stock stands out to fund manager Hugh Dive.

Calling it a "very well run, large and very profitable company," Dive — who is the chief investment officer at the Australia-headquartered Atlas Asset Management — is not along in liking the stock.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

CPI rises 0.1% month over month in November

The consumer price index gained 0.1% in November from the prior month. Economists polled by Dow Jones expected CPI to be flat month over month. On a year-over-year basis, the print came in at 3.1%, in line with expectations.

Excluding energy and food, CPI rose 0.3% month over month and 4% year over year — also matching expectations.

— Fred Imbert

European markets: Here are the opening calls

European markets are set to open in mixed territory Wednesday.

The U.K.'s FTSE 100 index is expected to open 5 points higher at 7,553, Germany's DAX down 16 points at 16,780, France's CAC down 6 points at 7,539 and Italy's FTSE MIB up 10 points at 30,352, according to data from IG. 

Euro zone industrial production for October is due, as well as an estimate of U.K. gross domestic product in the same month. Earnings come from Inditex.

— Holly Ellyatt