This is CNBC's live blog covering European markets.

European stocks edged lower Wednesday, as investors awaited the latest monetary policy decision by the U.S. Federal Reserve.

Traders are pricing in a 95% chance of a quarter-point cut from the Fed Wednesday, according to CME Group's Fed Watch tool.

Investors will also be paying close attention to Fed policymakers' Summary of Economic Projections and Fed Chair Jerome Powell's press conference, seeking clues about what might happen in the months ahead.

The central bank is widely expected to temper runaway expectations of more rate cuts in the approaching year, particularly as inflation remains stubborn.

U.K. inflation rose to 2.6% in November, new figures showed on Wednesday, in line with expectations. The Bank of England is widely expected to hold rates steady at its final monetary policy meeting of the year on Thursday.

Asia-Pacific markets were trading mixed overnight while U.S. stock futures were little changed.

— CNBC's Lisa Kailai Han contributed to this market summary

Renault shares jump 5%

Shares of French carmaker Renault rose 5.39% by 8:21 a.m. London time, following reports that Nissan and Honda are set to enter into merger talks.

Renault owns a minority stake in Nissan, whose Tokyo-listed shares gained 24% during the trading session in Asia — their best day in four decades.

— Chloe Taylor

UK inflation rises to 2.6%

Inflation in the U.K. rose to 2.6% in the year to November, meeting expectations but further dampening hopes of a rate cut from the Bank of England on Thursday.

The U.K.'s annual inflation rate stood at 2.3% in October.

Yields on the U.K.'s 10-year Gilt were little changed by 7:05 a.m. at 4.519%, while the British pound was down 0.07% against the U.S. dollar to trade at around $1.2700.

Markets are now overwhelmingly expecting the Bank of England to hold its key interest rate at 4.75% when its Monetary Policy Committee meets for the final time this year, according to overnight index swap data.

Read the full story here.

— Chloe Taylor

Sterling dips ahead of UK inflation data

The British pound traded lower against the dollar and the euro on Wednesday morning, as investors awaited the U.K.'s latest inflation print and a policy update from the Bank of England.

Sterling was around 0.1% lower against the euro, and 0.06% weaker against the greenback by 6:35 a.m. London time.

November inflation data, which will be published Wednesday morning, comes after official figures showed wage growth in Britain jumped 5.2% in the three months to October, while the nation's economy unexpectedly contracted that month.

On Thursday, the Bank of England will make its final monetary policy decision of the year.

— Chloe Taylor

CNBC Pro: These 6 stocks rose as Nvidia fell into correction territory

Six stocks in the S&P 500 have been inversely correlated to Nvidia's share price moves over the past month, according to analysis by CNBC Pro.

Five of the six stocks have also risen by an average of 6.75% alongside Nvidia's fall from all-time highs.

It comes as Nvidia fell into correction territory this week, meaning it's fallen over 10% from its closing high of $148.88 reached last month.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets: Here are the opening calls

European markets are expected to open lower Wednesday.

The U.K.'s FTSE 100 index is expected to open 8 points lower at 8,191, Germany's DAX down 48 points at 20,202, France's CAC down 10 points at 7,353 and Italy's FTSE MIB down 100 points at 34,258, according to data from IG.

Data releases will include U.K. inflation data.

— Holly Ellyatt