European markets close mixed ahead of Fed rate decision; Raiffeisen Bank falls 8.7%

This was CNBC's live blog covering European markets.

European markets closed mixed on Wednesday as investors awaited the latest monetary policy decision from the U.S. Federal Reserve.

The pan-European Stoxx 600 was up 0.02% at the end of the session as market movements remained subdued. Household goods fell 1.3%, while utilities stocks were up 1.1%.

Shares of luxury goods brands LVMH and Christian Dior and Hermes all fell more than 2% in early deals, with Burberry down 4.7%, after Kering issued a rare profit warning on declining Asia sales. Shares of Kering were down 12% after a delayed open.

U.K. inflation came in lower than expected at 3.4% year on year in February, official figures showed Wednesday, down from 4% in January.

The Fed is expected to keep rates unchanged as it concludes its two-day policy meeting. However, a recent slate of worrying inflation reports has investors concerned that the central bank could signal interest rates will remain higher for longer than expected.

U.S. stocks were flat in morning trade following a winning day for the major averages. Asia-Pacific markets rose as investors digested the Bank of Japan's landmark shift in monetary policy while awaiting the Fed's interest rate decision.

European stocks closed mixed Wednesday, with the Stoxx 600 index nudging just 0.02% higher.

Major bourses were also spread between positive and negative territory, with Germany's DAX up 0.14% while France's CAC 40 dropped 0.5% amid a retreat in luxury stocks.

— Jenni Reid

Luigi Speranza, global head of Markets 360 and chief economist at BNP Paribas, discusses the latest U.K. inflation data and the challenges facing the Bank of England, as it prepares to cut interest rates later this year.

Shares of Raiffeisen