LONDON: European stocks wavered in opening deals on Wednesday, with the inflation-fighting Federal Reserve widely forecast to deliver its biggest interest rate hike in more than two decades.

London's benchmark FTSE 100 index dipped 0.1 percent to 7,553.27 points compared with the closing level on Tuesday.

In the eurozone, Frankfurt's DAX rose 0.2 percent to 14,070.96 points and the Paris CAC 40 added 0.3 percent at 6,494.06.

Asian indices meanwhile diverged in holiday-thinned trade.

Stocks rise, US yields slip as markets await Fed rate hike

Later on Wednesday, the Fed is expected to announce a 50 percentage point interest rate hike -- its biggest since 2000 -- as it seeks to tame galloping inflation.

"The beady eye of the Federal Reserve is keenly trained on soaring inflation and right now the central bank is set on bringing it down swiftly," said Hargreaves Lansdown analyst Susannah Streeter.

"It's pretty much a given that there will be a fresh ratcheting up of rates announced by the Fed today."