European stocks close: stocks closed higher as market participants are awaiting the release of the Fed's monetary policy meeting results later in the day

Stock indices closed higher as market participants are awaiting the release of the Fed's monetary policy meeting results later in the day. Analysts expect the Fed to raise its interest rate by 25 basis points to 0.50% or to the range 0.25% - 0.50% from 0.00% - 0.25%.

Meanwhile, the economic data from Eurozone was mixed. Eurostat released its final consumer price inflation data for the Eurozone on Wednesday. Eurozone's harmonized consumer price index fell 0.1% in November, beating expectations for a 0.2% drop, after a 0.1% increase in October.

On a yearly basis, Eurozone's final consumer price inflation increased to 0.2% in November from 0.1% in October, exceeding the preliminary reading of a 0.1% rise.

Eurozone's final consumer price inflation excluding food, energy, alcohol and tobacco fell to an annual rate of 0.9% in November from 1.1% in October, in line with the preliminary reading.

Eurozone's unadjusted trade surplus rose to €24.1 billion in October from €20.5 billion in September, exceeding expectations for a rise €21.5 billion.

Exports rose at an annual rate of 1.0% in October, while imports were flat.

Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for the Eurozone on Wednesday. Eurozone's preliminary manufacturing PMI rose to 53.1 in December from 52.8 in November. Analysts had expected the index to remain unchanged at 52.8.

Eurozone's preliminary services PMI fell to 53.9 in December from 54.2 in November, missing expectations for a fall to 54.1.

Growth of new business supported both indexes.

"The Eurozone economy enjoyed a comfortably solid end to 2015, though policymakers are likely to remain disappointed by the relatively modest pace of expansion and lack of inflationary pressures, given the stage of the recovery and the amount of stimulus already in place", Markit's Chief Economist Chris Williamson said.

He noted that data was signalling the Eurozone's economy could expand 0.4% in the fourth quarter, meaning that the economy grew 1.5% in 2015.

The Office for National Statistics (ONS) released its labour market data on Wednesday. The U.K. unemployment rate fell to 5.2% in the August to October quarter from 5.3% in the July to September quarter. It was the lowest reading since three months to January 2006.

Analysts had expected the unemployment rate to remain unchanged at 5.3%.

The claimant count rose by 3,900 people in November, beating expectations for a rise by 1,500, after an increase of 200 people in October. October's figure was revised down from a 3,300 increase.

U.K. unemployment in the July to September period dropped by 110,000 to 1.71 million from the previous quarter.

Average weekly earnings, excluding bonuses, climbed by 2.0% in the August to October quarter, missing expectations for a 2.0% rise, after a 2.4% gain in the July to September quarter. The previous quarter's figure was revised down from a 2.5% increase.

Average weekly earnings, including bonuses, rose by 2.4% in the August to October quarter, missing expectations for a gain of 2.5%, after a 3.0% increase in the July to September quarter.

The Bank of England monitors closely the wages growth it considers when to start hiking its interest rate.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,061.19 +43.40 +0.72 %

DAX 10,469.26 +18.88 +0.18 %

CAC 40 4,624.67 +10.27 +0.22 %