19.09.201721:32:00UTC+00European Stocks Mixed as Fed Decision Eyed

European finished mixed on Tuesday as investors await the decision from the two-day Federal Reserve policy meeting.

The pan-European Stoxx 600 was flat, with most sectors lower and major bourses pointing in opposite territories.

Telecom stocks climbed as much as 0.9 percent to their highest level in almost four weeks after CNBC reported that U.S. wireless carriers T-Mobile US Inc and Sprint Corp were in active merger negotiations. Deutsche Telekom, which controls T-Mobile US, was the largest advancer, higher by over three percent. Other stocks in the sector were also lifted by the report.

European telecom stocks have underperformed the wider market in the past two years. Valuations and earnings potential have began to spur investors' interest.

The food and beverage sector fell almost 0.7 percent after a Mexican bottler and retailer said it had sold a stake in the world's second-biggest brewer. Fomento Economico Mexicano (Femsa) announced it had sold a 5.24 percent stake in Heineken. The Dutch brewer's shares dropped 3.7 percent on the news.

Eurofin Scientific jumped to the top of the benchmark in mid-day deals after it reported an agreement to buy EAG Laboratories from Odyssey Investment Partners. The French pharmaceutical firm jumped over six percent.

German fashion retailer Hugo Boss tumbled towards the bottom of the Stoxx 600, after Morgan Stanley downgraded the company to underweight from equal-weight. According to the brokerage, the retailer faces “market-driven”, instead of brand-driven, pressure. Shares of Hugo Boss dropped 3.47 percent.