San Francisco Frontiers - Cautious trading on global markets before Fed rate decision

Wall Street's main indices moved in mixed directions at the opening bell, with the Dow slipping as caution prevailed with the US central bank forecast to hold its key lending rate at a 22-year high.

In Europe, the main indices moved modestly higher, including in London despite news of a worse-than-expected contraction in monthly UK economic output.

Frankfurt held firm after German Chancellor Olaf Scholz's coalition reached a last-minute deal to end a budget deadlock.

In Asia, Tokyo, Sydney and Wellington climbed but Hong Kong, Shanghai and Bangkok fell.

With a pause deemed extremely likely, attention is on the language of the Fed decision, along with its accompanying economic forecasts, and the post-meeting press conference by Fed Chair Jerome Powell.

"The final Fed meeting of the year could be the most eventful, with the central bank likely to acknowledge it's done with tightening and even signal rate cuts next year," said Craig Erlam, senior market analyst at trading firm OANDA.

"The question is how many, with markets now pricing in four starting in May."

The Fed kicks off a flurry of releases by key central banks on both sides of the Atlantic, with both the European Central Bank and the Bank of England due to announce their decisions on Thursday.

London investors absorbed official data showing that the UK economy slowed more sharply than expected in October as high BoE borrowing costs continued to take their toll.

Wall Street had ended Tuesday on a bright note -- with the S&P 500 at a near three-year high -- following news that US consumer prices slowed marginally last month, suggesting the Fed is on course in its fight against inflation.

Data showing core prices remained resilient did, however, leave traders disappointed and highlighted the battle officials still have in getting inflation down to their target.

Data out Wednesday showed US wholesale prices were unchanged in November as a sharp drop in the energy index prevented an overall increase in producer costs.

While there is a broad expectation that the bank will cut rates next year, traders now think it will be by less than previously tipped and the first will be slightly later.

Oil prices ticked higher, one day after tumbling almost four percent on worries over surging US crude output and flagging Chinese demand.

- Key figures around 1430 GMT -

New York - Dow: DOWN less than 0.1 percent at 36,550.24 points

London - FTSE 100: UP 0.4 percent at 7,569.34

Paris - CAC 40: UP 0.2 percent at 7,555.22

Frankfurt - DAX: UP less than 0.1 percent at 16,802.19

EURO STOXX 50: UP 0.2 percent at 4,543.58

Tokyo - Nikkei 225: UP 0.3 percent at 32,926.35 (close)

Hong Kong - Hang Seng Index: DOWN 0.9 percent at 16,228.75 (close)

Shanghai - Composite: DOWN 1.2 percent at 2,968.76 (close)

Euro/dollar: UP at $1.0799 from $1.0794 on Tuesday

Dollar/yen: DOWN at 145.17 yen from 145.45 yen

Pound/dollar: DOWN at $1.2532 from $1.2563

Euro/pound: UP at 86.15 pence from 85.92 pence

West Texas Intermediate: UP 0.3 percent at $68.84 per barrel

Brent North Sea crude: UP 0.3 percent at $73.48 per barrel

M.Powell--SFF