European stocks open higher ahead of the Fed’s rate decision

European shares started trading higher on Wednesday, boosted by the rise of the Danish pharmaceutical company Novo Nordisk, while hopes were raised that the Federal Reserve may hint at a slowdown in the pace of monetary tightening at its meeting later on Wednesday.

The pan-European STOXX 600 index rose 0.3 percent by 0812 GMT, with Novo Nordisk shares jumping 4.5 percent as the company raised its full-year profit forecast based on strong sales of the diabetes drug Osmbek and reported better-than-expected earnings.

Healthcare stocks rose 0.9 percent and the banking sector rose 0.4 percent, before what is expected to be the fourth consecutive hike by the US Federal Reserve to interest rates by 75 basis points.

But attention is still focused on whether the US central bank may ease monetary policy tightening.