2017.12.1321:31:00UTC+00European Markets Lower as Italian Stocks Drop, Fed Decision Eyed

European markets closed lower on Wednesday, ahead of the outcome of the U.S. Federal Reserve's meeting, while political jitters weighed on Italian stocks.

The pan-European Stoxx 600 dropped 0.24 percent provisionally, after what had been seen as a choppy trading session. Sectors, meanwhile, showed a mixed picture by the finish.

The UK FTSE 100 edged down 0.05 percent, while France's CAC 40 and Germany's DAX declined 0.51 and 0.44 percent respectively.

Italy's parliament will be dissolved between Christmas and the New Year with national elections probably set for March 4, a parliamentary source said. Concern that no clear majority will emerge caused Italy's FTSE MIB index to drop 1.4 percent Sovereign Italian bonds also fell.

The STOXX 600 is eight percent higher so far in 2017 and Italy's FTSE MIB has gained 18 percent and is poised to be the best performer among top European indexes.

Utilities ended up being the worst performers, with the sector slipping 2.11 percent by the end of trade.

Germany's Innogy plunged to the bottom, losing 13.23 percent, after the group adjusted its guidance for the 2017 business year. The decline in shares added pressure other German utility companies, as RWE dropped 13 percent while EON, lost nearly five percent.

In the UK, industrial-equipment hire firm Ashtead pared its gains of the previous session, dropping over five percent after Citi trimmed its rating for the stock.

Inditex saw a slowdown in sales growth during its third quarter, due to warmer weather conditions during Europe's fall season. However, the Zara-owner's shares climbed 1.7 percent, following news that sales had increased both in-store and online during the last month.