European stocks close: stocks traded higher ahead of the Fed's interest rate decision

Stock indices traded mixed ahead the release of the Fed's interest rate decision later in the day. Analysts expect the Fed to keep it monetary policy unchanged.

Market participants also eyed the economic data from the Eurozone. The European Central Bank (ECB) released its M3 money supply figures on Wednesday. M3 money supply rose 5.0% in March from last year, in line with expectations, after a 4.9 % increase in February. February's figure was revised down from a 5.0% rise.

Loans to the private sector in the Eurozone climbed 1.6% in March from the last year, missing expectations for a 1.7% rise, after a 1.6% gain in February.

Market research group GfK released its consumer confidence index for Germany on Wednesday. German Gfk consumer confidence index climbed to 9.7 in May from 9.4 in April. Analysts had expected the index to remain unchanged at 9.4.

"Consumers are clearly assuming that the German economy will regain some momentum in the coming months," Gfk noted.

ECB Executive Board member Benoit Coeure said in an interview with the Italian newspaper Il Sole 24 Ore Wednesday that the central bank's stimulus measures were working. Coeure pointed out that the ECB did not discuss helicopter money and further stimulus measures. He also said that a sharp appreciation in the euro would be a problem for the central bank.

The Office for National Statistics released its U.K. GDP data on Wednesday. The preliminary U.K. gross domestic product (GDP) climbed 0.4% in the first quarter, in line with expectations, after a 0.6% rise in the third quarter.

The growth was mainly driven by a strong output in the services sector, which climbed 0.6% in the first quarter.

Construction fell 0.9% in the first quarter, production declined 0.4%, while agriculture decreased 0.1%.

On a yearly basis, the preliminary U.K. GDP increased 2.1% in the first quarter, beating forecasts of a 2.0% rise, after a 2.1% gain in the fourth quarter.

The Confederation of British Industry (CBI) released its retail sales balance data on Wednesday. The CBI retail sales balance plunged to -13% in April from +7% in March, missing expectations for a rise to +12%. It was the fastest pace since January 2012.

The decline was driven by drops in department stores and the clothing sales.

Sales are expected to rebound next month, while orders are expected to fall.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,319.91 +35.39 +0.56 %

DAX 10,299.83 +40.24 +0.39 %

CAC 40 4,559.4 +26.22 +0.58 %