European Stocks Edge Higher Ahead Of Federal Reserve Decision

(RTTNews) - European stocks rebounded Wednesday on renewed hopes the Federal Reserve will signal low interest rates will remain in place for a "considerable time."

That's after the U.S. Labor Department reported an unexpected drop in consumer prices that kept annual inflation below the Fed's 2 percent target.

Still, uncertainty about Scotland's referendum on independence from the U.K. kept investors in a relatively cautious mood.

The Euro Stoxx 50 index of eurozone bluechip stocks picked up 0.54 percent to 3,239.24.

The German DAX added 0.40 percent, the French CAC 40 rose 0.54 percent and the FTSE 100 index eased 0.07 percent.

Dialog Semiconductor rose 2.8 percent. The stock was raised to "Buy" from "Hold" at Commerzbank.

Air France-KLM rose 3.7 percent. France's prime minister has asked its pilots to call off a strike.

DS Smith, a supplier of recycled packaging for consumer goods, expects continued performance in line with its medium term financial targets. The stock advanced more than 5 percent.

Meanwhile, Daily Mail & General shared slumped after warning about costs associated with the delayed release of a risk management solutions product.

Royal Mail shares rose 3.5 percent.

Smiths Group, which reported full year results, dropped 6 percent.

Richemont lost 4.1 percent in Zurich after the Swiss luxury goods group said its sales for five months were impacted by weak Asia Pacific performance.

Inditex lost 2.4 percent. The Spanish fashion retailer reported a decline in first-half profit, hurt by margin pressure.