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London - Europe's stock markets dipped on Wednesday in cautious deals before crucial US economic data and the outcome of the latest Federal Reserve policy meeting.
Investors also digested news of more Western sanctions on Russia over the Ukraine crisis, with the euro at eight-month lows against the dollar owing to concerns about the impact on the eurozone economy.
In late morning deals, London's benchmark FTSE 100 index fell 0.06% to stand at 6 803.66 points, winning some support from Barclays results.
In Paris, the CAC 40 fell back 0.26% to 4 354.19 points and Frankfurt's DAX 30 index shed 0.14% to 9 640.20.
The European single currency meanwhile slid to $1.3395 - the lowest level since mid-November.
"There will barely be time to pause for breath today once US data starts emerging, with ADP (employment) numbers kicking off the afternoon, followed swiftly by US GDP and then the Federal Reserve meeting," said analyst Chris Beauchamp at trading firm IG.
"It feels like markets have been on hold for the week so far, seeing jumpy trade on conflicting expectations about the outcomes today."
Wall Street had finished lower on Tuesday after the United States and European Union broadened sanctions on Russia, overshadowing US economic data and earnings reports.
In London, the focus was on upbeat results from Britain's scandal-hit bank Barclays.
"It's been a choppy morning so far in London, but trades have been mostly to the downside ahead of big US numbers despite a warm reception for Barclays' quarterly figures," added Beauchamp.
Barclays' share price jumped 4.08% to 228 pence after the bank posted a 68% jump in first-half net profits, as it pushed ahead with a restructuring that will shrink its investment bank division.
Earnings after taxation surged to $1.9bn in the six months to June, from 671 million a year earlier, Barclays said in a results statement.
The lender also bounced back into profit in the second quarter with a net figure of 161 million, after a loss of 168 million last time around.
The Japanese market has enjoyed a pick-up in recent weeks thanks to a dip in the yen, which helps exporters, as well as upbeat corporate earnings.
Elsewhere, Sydney added 0.62%, Seoul climbed 1.00% and Hong Kong rose 0.37%, but Shanghai ended marginally lower.
On the foreign exchange market, the euro later stood at $1.3401, down from $1.3409 late in New York on Tuesday.
The euro was unchanged at 79.13 British pence from Tuesday. The fell to $1.6935 from $1.6943.
At Capital Economics, economist Jonathan Loynes, noting that the euro had fallen by more than 3.0% against the dollar since May, commented: "The euro finally appears to be succumbing to the downward pressure implied by the divergent prospects for monetary policy in the US and eurozone.
"But bigger declines are likely to be needed to kick-start the region's recovery and fully eliminate the danger of deflation."
He said that Capital Economics expected the euro to fall to about $1.30 by the end of this year and to $1.25 by the end of 2015, but the fall could be faster.
The price of gold eased to $1 297.50 an ounce on the London Bullion Market from $1 299.25 on Tuesday.
