European stocks are expected to open lower Wednesday as investors await the latest monetary policy decision by the U.S. Federal Reserve.

The U.K.’s FTSE 100 index is expected to open 8 points lower at 8,191, Germany’s DAX down 48 points at 20,202, France’s CAC down 10 points at 7,353 and Italy’s FTSE MIB down 100 points at 34,258, according to data from IG.

Traders are pricing in a 95% chance of a quarter-point cut Wednesday, according to CME Group’s Fed Watch tool.

Investors will also be paying close attention to Fed policymakers’ Summary of Economic Projections and Fed Chair Jerome Powell’s press conference, seeking clues about what might happen in the months ahead.

The central bank is widely expected to temper runaway expectations of more rate cuts in the approaching year, particularly as inflation remains stubborn.

Data releases on Wednesday include the latest U.K. inflation rate. The data comes ahead of the Bank of England’s monetary policy meeting on Thursday, with markets so far pricing in only a slim chance of a final rate cut of the year.

Asia-Pacific markets were trading mixed overnight while U.S. stock futures were little changed.

— CNBC’s Lisa Kailai Han contributed to this market summary