European and US stocks were largely lower yesterday as investors eyed looming central bank meetings in the US and Japan. 
After last week’s healthy gains, traders appeared to be taking a step back before the two-day US Federal Reserve talks, started yesterday, which may offer signs of action in the future. 
In London, the FTSE 100 up 0.4% at 6,284.52 points; Frankfurt - DAX 30 down 0.3% at 10,259.59 points and Paris - CAC 40 down 0.3% at 4,533.18 points at the close yesterday. 
In the wake of turmoil across world markets early in the year, the Fed has lowered expectations of rate rises this year—saying it would closely watch overseas developments before making a move. 
Traders have predicted the next rise will be towards the end of the year but every utterance from the bank will be pored over for clues about its thinking. 
“Regardless of the Fed outlook... markets price in less than 50% probability for a rate hike to happen this year,” noted Brenda Kelly, head analyst at trading firm London Capital Group. 
In Europe, London’s benchmark FTSE stood out from the crowd, closing slightly higher, after energy giant BP posted a hefty loss during the first quarter partly due to low crude prices. 
Shares in Paris and Frankfurt slipped, while US stocks followed suit after opening higher following mostly positive earnings reports from large companies, including US consumer products giant Procter & Gamble. 
The euro rose against the dollar. 
Alex Holmes, of Capital Economics, agreed that it was “very unlikely” that the Fed would announce a change in policy after its meeting but said they would not rule out “tweaks to its statement that left the door open for another rate hike in June. 
“Indeed, we expect not only another 25bp (basis point) hike then, but two more before the year is over.” 
Sheraz Mian, of Zacks Investment Research, said the mood was “tentative” overall ahead of the Fed meeting. 
“The only thing that the Fed could potentially do tomorrow is to indicate whether they plan on making a move in the June meeting or not,” he said in a note to investors. 
“They are not going to come out and tell us what they plan on doing, but the language that they use to describe the economic picture and downside risks to the outlook will get interpreted that way.” 
Earlier in Asia, Japan’s Nikkei stocks index ended 0.5% lower, with the yen holding Monday’s gains against the dollar despite speculation the country’s central bank will ramp up its stimulus when its two-day policy meeting ends tomorrow. 
The BoJ has been tipped to further ease monetary policy after this month’s double earthquake in southern Japan that caused factory closures at a time when the country’s economy is stuttering. 
“Despite speculation that the BoJ will act aggressively in a bid to stoke inflation, Japanese stocks fell for a third day” yesterday, said Kelly. 
On oil markets, prices rebounded slightly yesterday from recent sharp losses that were sparked by a report that Saudi Arabia was close to completing an oilfield expansion. 
Analysts said the gains, partly prompted by a slightly weaker dollar, would likely be short-lived due to lingering worries about a global supply glut.