This is CNBC's live blog covering European markets.

European stocks were muted on Wednesday as global markets digested new inflation readings and looked ahead to the U.S. Federal Reserve's monetary policy decision.

The pan-European Stoxx 600 closed flat provisionally, reversing an earlier decline of 0.5%. Basic resources shed 1.7% to lead losses but sectors were a mixed bag, with utilities, real and F&B stocks gaining around 0.7%.

Global markets rallied Tuesday after the latest U.S. inflation showed that consumer prices rose less than expected in November, signaling that inflationary pressures could be starting to ease.

The consumer price index, which measures a wide basket of goods and services, rose just 0.1% from the previous month, and increased 7.1% from a year ago, data from the Labor Department showed. Economists surveyed by Dow Jones were expecting a 0.3% monthly increase and a 7.3% 12-month rate.

The U.S. Federal Reserve concludes its last meeting of 2022 on Wednesday and economists widely expect the central bank to raise rates by half a percentage point..

Thursday will also see monetary policy decisions from the Bank of England, European Central Bank and the Swiss National Bank.

European markets muted as all eyes on central bank announcements

Europe's Stoxx 600 index closed flat following its Tuesday rally, as investors braced for a slew of updates from central banks on rate hikes and inflation expectations.

The U.K.'s FTSE 100, France's CAC 40 and Germany's DAX all ended the session slightly lower. Mining and travel stocks led losses, shedding 1.7% and 1.5% respectively, while healthcare, retail and utilities all reversed earlier declines to eke out a 0.7% gain.

U.S. Federal Reserve Chairman Jerome Powell will speak after European markets close, with the Fed widely expected to announce a 50 basis point hike.

Monetary policy announcements from the U.K., EU and Switzerland are all due Thursday, when their central banks are also expected to slow the pace of rate rises.

— Jenni Reid

Spain's antitrust watchdog to investigate oil firms

Repsol, BP and Cepsa confirmed they were among the oil companies subject to a preliminary investigation by a Spanish watchdog into possible anticompetitive practices, Reuters reported.

The firms all said they would fully cooperate with the process.

The watchdog, known as CNMC, said it had raided corporate headquarters between Nov. 28 and Dec. 2 as part of the probe.

A source told Reuters all dominant players in the oil industry in Spain were subject to the investigation.

The CNMC said a breach of Spain's competition act could lead to fines of up to 10% of total business in the year immediately prior to the infringement.

It follows a rise in energy firm profits this year as bills on households and businesses have soared, prompting government intervention.

—Jenni Reid

Stocks open little changed

Stocks opened little changed Wednesday as investors awaited the Federal Reserve's latest interest rate hike decision in its effort to crush inflation.

The Dow Jones Industrial Average gained 46 points, or 0.1%. The S&P 500 and Nasdaq Composite were roughly flat.

— Sarah Min

Stocks on the move: TUI, SSAB down 7%

TUI shares fell 7.8% to the bottom of the Stoxx 600 by mid-afternoon after the German-based travel operator announced its full-year earnings and a planned capital raise in order to repay Covid-19 support next year.

Swedish steel manufacturer SSAB also fell more than 7% after a double-downgrade from JPMorgan, which cut its rating for the stock to "underweight" from "overweight," citing falling U.S. plate prices as a potential drag on near-term earnings momentum.

- Elliot Smith

Decade ahead will be great for investing, but we need to wait out next year first, investment manager says

There is a good decade ahead for investors, according to Bill Smead, chief investment officer at Smead Capital Management, but the "tide is going against us" for the first year, he said.

Recent inflation print is unlikely to have a large short-term effect on stock markets, Deutsche Bank

Henrik Johnsson of Deutsche Bank says though there are recession worries, there's likely to be stability in the first quarter of 2023.

Ifo Institute: Germany's recession milder than expected

Germany's expected winter recession will be milder than previously anticipated, according to forecasts published Wednesday by the country's Ifo Institute.

The economic research think tank now projects that Germany's economic output will shrink by just 0.1% in 2023, a rosier outlook than the 0.3% contraction forecast in the fall.

Growth in 2022 is now expected to hit 1.8%, up from a previous forecast of 1.6%, while the economy is seen returning to growth in 2024 with a 1.6% expansion.

"The third quarter of 2022 in particular was much better than expected, with plus 0.4 percent. In the two quarters of the 2022–23 winter half-year, gross domestic product will shrink, but after that things will start to pick up again," said Timo Wollmershäuser, head of forecasts at Ifo.

- Elliot Smith

Stocks on the move: Tui down 7%, OMV up 3%

TUI shares fell more than 7% in early trade to the bottom of the Stoxx 600 after the German-based travel operator announced its full-year earnings and a planned capital raise in order to repay Covid-19 support next year.

At the top of the index, Austrian energy firm OMV climbed 3% after announcing a special dividend.

- Elliot Smith

UK inflation falls from 41-year high as fuel price surge eases

U.K. inflation came in slightly below expectations at 10.7% in November, as cooling fuel prices helped ease price pressures, though high food and energy prices continued to squeeze households and businesses.

Economists polled by Reuters had projected an annual increase in the consumer price index of 10.9% in November, after October saw an unexpected climb to a 41-year high of 11.1%. On a monthly basis, the November increase was 0.4%, down from 2% in October and below a consensus estimate of 0.6%.

Read the full story here.

- Elliot Smith

CNBC Pro: Dan Niles is positive on this corner of tech, names two global stocks to buy

Dan Niles, founder and senior portfolio manager of the Satori Fund, told CNBC that he recently bought these tech stocks, and explained why he likes them.

According to Niles, the Satori Fund is up this year, beating the S&P 500 which has declined around 15% over the same period.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Morgan Stanley's Mike Wilson says his S&P 500 call is more bearish than most

Morgan Stanley Chief U.S. Equity Strategist Mike Wilson, who accurately called the 2022 sell-off, reiterated his call on the bear market bottom and said he was even more confident of his forecasts now.

Wilson, a prominent market bear this year, explained his reasoning in his latest report to clients on Dec. 12.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets: Here are the opening calls

European markets are heading for a mixed open Tuesday as investors react to the latest reading of U.S. inflation for November.

The U.K.'s FTSE index is expected to open 1 point higher at 7,497, Germany's DAX 14 points lower at 14,469, France's CAC down 2 points at 6,735 and Italy's FTSE MIB down 15 points at 24,612, according to data from IG.

There are earnings from Inditex and TUI on Wednesday, and data releases include U.K. inflation for November and euro zone industrial orders for October.

— Holly Ellyatt