The European markets look set to open higher on Wednesday amid signs Chinese authorities are still willing to intervene to stabilize the stock market and avert systematic risks. China Securities Regulatory Commission said it was "looking into incidents of share-dumping" on Monday that sent the country's benchmark index to its biggest loss in eight years.
Asian stocks, however, are turning in a mixed performance as caution prevailed ahead of policy decision from the U.S. Federal Reserve later tonight. While the Fed is unlikely to give rate hike clues, investors will parse the Fed's post meeting statement for any shifts in the language.
In economic releases, investors eye German consumer sentiment figures, U.K. mortgage approvals and U.S. pending home sales data as well as the Energy Information Administration's weekly petroleum status report later in the day for further direction.
Oil prices rebounded from near four-month lows in Asian deals as calm returned to global equity and commodity markets following a major sell-off in the Chinese market earlier in the week. Gold prices also steadied near $1,100 an ounce, as the dollar eased slightly against a basket of six major currencies.
Meanwhile, Twitter Inc.'s shares fell more than 11 percent in after-hours trading Tuesday after the microblogging company posted disappointing user growth.
In domestic corporate news, insurance group RSA Insurance Group Plc said it has not held talks with or received a potential offer from Zurich Insurance Group.
The world's top luxury group LVMH reported a 5 percent increase in first-half net profit, as sales jumped 19 percent driven by strong growth in Europe and the United States.
HeidelbergCement AG said that it has entered into a purchase agreement with Italmobiliare S.p.A. for its about 45 percent shareholding in Italcementi S.p.A.
Talanx AG, a German holding and insurance company, said it is strengthening its German life insurance business with a strategic realignment and associated accounting measures.
Osram Licht AG, a manufacturer of lamps, lighting systems, and electronic control gears, reported that its third-quarter net income climbed 43.6 percent to 63.8 million euros from 44.4 million euros last year.
Solvay S.A. said it has entered into a definitive merger agreement with U.S.-based Cytec to acquire 100 percent of its share capital for $75.25 per share in cash.
The European markets ended Tuesday's session firmly in positive territory as strong company results and corporate takeover activity helped boost investor sentiment after five days of losses. The German DAX rose 1.1 percent, France's CAC 40 index added a percent and the U.K.'s FTSE 100 advanced 0.8 percent.
U.S. stocks broke a five-day losing streak on Tuesday as China's battered stock market rebounded from steep session lows and strong earnings from a slew of companies such as UPS, Pfizer and Ford buoyed investor confidence.
Economic reports were lackluster, with property prices falling in 10 of 20 U.S. areas in May from a month earlier, while a gauge of consumer confidence unexpectedly slumped in July by the most in almost four years. The Dow gained 1.1 percent, the tech-heavy Nasdaq advanced 1 percent and the S&P 500 added 1.2 percent.
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