German carmaker Daimler was among the biggest losers in the sector. The company said on Wednesday that it would appoint its first ever non-German boss, with current CEO Dieter Zetsche set to hand the reigns over to Swede Ola Kaellenius in 2019. Shares were off by 0.24 percent.
Looking at individual stocks, Bouygues rose 2.6 percent after J.P. Morgan upgraded the stock to overweight from neutral and raised its price target to 46 euros ($54) from 42 euros.
Plane-maker Airbus saw shares move higher by around 3 percent on Wednesday. European regulators have granted a crucial certification to its A330-900 plane. Entry into service for the wide-body jet remains planned for 2018.
Comcast updated markets players on Wednesday, announcing that it has increased its stake in Sky to 36.95 percent. This is after winning a bidding war over the U.K. broadcaster.
In other corporate news, European Union executive body the European Commission said on Wednesday that an antitrust decision on the proposed merger between German steelmaker Thyssenkrupp and Indian rival Tata Steel will be made by October 30.
Fed decision in focus
In the United States, stocks have opened for trade slightly higher ahead of the anticipated rate rise by the Fed.
Meanwhile, Brexit continues to keep European markets busy. On Tuesday, U.K. Prime Minister Theresa May has said that it wouldn't be in the national interest to put forward another general election during exit negotiations. This comes as May faces more and more pressure over the future of divorce negotiations between the EU and the U.K.
Which sector will see the next mega-merger?
Not a Scientific Survey. Results may not total 100% due to rounding.
Deputy Prime Minister Luigi Di Maio — leader of the Italian populist Five Star Movement — said Tuesday he would refuse to support a budget unless it included its flagship universal basic income policy. If the government doesn't stick to a deficit target below 2 percent, it could add to friction with the EU.