All eyes on Fed meeting

Uncertainty Grips Markets

- Tensions soaring over reports that Russia may attack Ukraine

- S&P 500 index still 10% lower from its recent high

- Nikkei 225, S&P/ASX 200, Kospi, Hang Seng and Shanghai Composite dipped

Tokyo: European stocks opened higher Tuesday after a day of steep losses in Asia as markets waited to hear from Federal Reserve chair Jerome Powell after a two-day policy meeting that ends Wednesday.

The possibility of conflict between Russia and Ukraine and concern over coronavirus outbreaks also were adding to uncertainties. France's CAC 40 edged up 1.1% to 6,861.14 in early trading, while Germany's DAX added 0.6% to 15,100.95. Britain's FTSE 100 rose 0.5% to 7,334.99.

The futures of the Dow Jones Industrial Average was 1.1% lower, while the S&P 500 futures fell 1.6%.

On Monday, a late buying spree pushed the benchmark S&P 500 index to a 0.3% gain after pulling it out of so-called correction territory — a drop of 10% or more from its recent high. The Fed meeting will provide an update on policymakers' latest thinking on the economy and interest rates. Some economists worry the Fed is moving too slowly in tamping down inflation by raising rates that have been kept low for nearly two years to support markets and economies slammed by the pandemic. Others fret that the Fed may act too aggressively and could risk causing a recession without managing to cool inflation.