European shares inch lower ahead of Fed's big rate decision

European shares edged lower on Wednesday, as investors stayed on sidelines ahe of an all-important interest rate decision by US Federal Reserve that could mark beginning of a monetary-easing cycle in world's largest ecomy.

pan-European STOXX 600 index was down 0.2 per cent at 516.15 points, led by losses in healthcare shares following reports that vo rdisk's Ozempic is "very likely" to be one of next drugs targeted for a price cut in United States.

Danish drugmaker's shares were down 1.7 per cent.

Techlogy shares also pulled markets down with a 0.7 per cent fall while miners slipped 0.5 per cent.

All major European markets were tring flat to lower.

Britain's FTSE 100 dipped 0.3 per cent after UK heline inflation stood at an annual rate of 2.2 per cent in August, unchanged from July, but price growth in services sector - closely watched by Bank of England - picked up.

day will be mopolised by US central bank's expected start of policy easing, with a decision on interest rates due at 1800 GMT. Money markets see a 63 per cent chance of a 50-basis-point reduction, according to CME's FedWatch Tool.

"Markets currently expect a 50-bps cut by Fed, and it's very unlikely Fed will surprise investors by going 25 bps. We expect Fed to cut 50 bps to get ahe of downward trending labor market data, even as inflation fight looks done," said Sonu Varghese, global macro strategist at Carson Group.

Investors will also keep a close watch on euro zone's inflation data at 0900 GMT, while monitoring comments from European Central Bank's supervisors Claudia Buch and Elizabeth McCaul later in day.

Italy's Campari slipped 6.1 per cent to bottom of benchmark index as CEO Matteo Fantacchiotti unexpectedly stepped down after only five months at helm.

Reckitt Benckiser vanced 1.3 per cent following reports that consumer goods giant launched early discussions with potential suitors for a sale of its homecare assets, which could be worth more than 6 billion pounds ($7.89 billion).

France's Ubisoft Entertainment jumped nearly 5 per cent to top of STOXX 600 after BMO Capital Markets raised rating on stock to "outperform".