European stocks jumped to an 11-month high on Tuesday as Italian bank shares strengthened after the country's largest lender, UniCredit SpA, rolled out a restructuring plan.

U.S. stocks set fresh records on Tuesday with the Dow Jones Industrial Average closing at a high for the seventh session in a row as it moved within 100 points of the 20,000 milestone ahead of the Federal Reserve's interest-rate decision Wednesday. The market is pricing in a nearly 100% chance that the Federal Open Market Committee will lift key interest rates, which leaves much attention on clues for future policy decisions.

Asian markets remained in limbo Wednesday ahead of critical meeting by the U.S. Federal Reserve, which is widely expected to raise interest rates. Asian markets have been in lockdown so far this week, with traders avoiding the risk of being caught out by a surprise Fed inaction. Traders are also waiting for guidance on the Fed's plans for rate rises in 2017.