European markets anticipate a lower opening before the release of UK inflation data and the U.S. Fed rate decision.

European markets were set to open lower on Wednesday, as investors anticipated crucial data from the region and focused on the U.S. Federal Reserve's interest rate decision.

The U.K.'s FTSE 100 was set to open down around 21 points, Germany's DAX was on track to fall by around 30 points, France's CAC was set to dip by around 10 points, and Italy's FTSE MIB was set to fall by around 39 points.

The pan-European Stoxx 600 index had closed higher on Tuesday.

The U.K. will release inflation figures for August in Europe, and economists surveyed by Reuters anticipate the headline number to be 2.2%.

This week is packed with central bank meetings, including the Bank of England, Bank of Japan, and U.S. Federal Reserve, all of which will make interest rate policy decisions.

It is almost certain that the Fed will declare an interest rate reduction on Wednesday, marking its first decrease since it began raising rates in March 2022.

The FedWatch tool from CME Group shows that the chances of a 50-basis-point reduction have been increasing recently, with a current probability of 65%. However, traders are still divided on the magnitude of the cut.

On Wednesday, Asia-Pacific markets were mixed while U.S. stock futures remained unchanged before the Fed's decision.

The final reading of euro zone inflation figures for August is also due in Europe.