European share indexes were flat today, with investors cautious ahead of an interest rate decision and statement from the US Federal Reserve.
Earnings were again mixed with tyre maker Michelin up 1.5 per cent after quarterly sales were roughly in line with forecasts while Spanish bank BBVA dipped 1 per cent after asset sales boosted its nine-month net profit.
Benedikt Germanier, strategist at UBS
The FTSEurofirst 300 index of leading European shares was unchanged at 1,449.7 points having hit an intraday five-year high of 1,452.57 on Monday.
The wider DJ Stoxx 600 was also unchanged while Germany's DAX dipped 0.2 per cent, France's CAC 40 was flat and Britain's FTSE 100 ticked up 0.05 per cent.
US interest rates are widely expected to be kept on hold at 5.25 per cent this evening, but economists think the Fed could heighten a warning on inflation to make clear it will raise rates again if needed.
"We think housing market and GDP data due later this week will challenge the notion that the Fed could hike again and be consistent with easing next year," said Benedikt Germanier, strategist at UBS.
"However, with the Fed likely to maintain its somewhat hawkish message in the statement following its meeting conclusion today, markets are likely to be cautious about rebuilding easing expectations."
The Ifo economic research institute's measure of German business sentiment, due at 0800 GMT, is expected to remain resilient.