EU STOCKS drop as Fed statement eyed

European stock markets dropped on Wednesday ahead as investors wait for the much anticipated monetary-policy decision from the U.S. Federal Reserve.

The Stoxx Europe 600 index dropped 0.5% to 291.46.

For most investors, however, the focus was firmly on the U.S. Fed’s policy meeting later in the day. A statement is expected after the European markets close, followed by a press conference by Chairman Ben Bernanke, where market participants will be looking for any hints about tapering the bank’s quantitative easing program.

The BOE minutes have shown once again the same voting pattern to keep interest rate intact at 0.5%, 9-0, and 6-3 in favour of leaving the asset purchase programme unchanged at £375 billion, with King, Fisher and Miles advocating for an increase to £400 billion.

Shares of Imagination Technologies Group PLC slid 4.1% after the chip designer reported a drop in full-year profit.

Shares of Nordea Bank SE gave up 3.8% after the Swedish government said late Tuesday it will reduce its holding in the bank to 7.8% by selling up to 230 million ordinary shares.

Shares of Aggreko PLC dropped 3.3% after UBS cut the firm to neutral from buy.

Shares of Alcatel-Lucent  jumped 6.3% after the telecoms-equipment firm announced a cost-cutting plan aimed at trimming 1 billion euros ($1.34 billion) and selling at least €1 billion of assets by 2015.

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