European stocks pushed higher Wednesday, with the Swedish central bank’s decision to expand its bond-buying program coming ahead of a likely decision by the U.S. Federal Reserve to keep interest rates at ultralow levels. The Stoxx Europe 600 SXXP, +0.54% picked up 0.4% to 373.50 as only the utilities group lost ground. Early in Europe’s trading day, Sweden’s central bank said it will raise the target of its sovereign bond buying by 65 billion Swedish kronor ($7.63 billion), to 200 billion kronor. The move is aimed at lifting Swedish inflation to a 2% target. The Riksbank left its main interest rate unchanged at minus 0.35%. “The move has painted the European equity markets green ... as cheap liquidity will continue [to] feed the market,� said Ipek Ozkardeskaya, market analyst at London Capital Group, in a note. Central banks worldwide “are not ready to turn off the tap any time soon.� In Stockholm, the benchmark OMX 30 index OMXS30, +0.49% gained 0.6% to 1,491.39. The U.S. dollar eventually turned lower against the Swedish krona USDSEK, -0.4115% down 0.4% at 8.4765 kronor. In Paris, the CAC 40 PX1, +0.65% rose 0.7% to 4,882.56, and in London, the FTSE 100 UKX, +0.41% swung higher, rising 0.5% to 6,394.46. Germany’s DAX 30 DAX, +0.77% gained 0.7% to 10,766.84, aided in part by a 4.3% rise in shares of Volkswagen AG VOW3, +3.63% VLKAY, -2.60% Investors appeared to take in stride the car maker’s swing to a €1.73 billion ($1.9 billion) loss in the third quarter in the wake of its emissions-rigging scandal. Volkswagen also issued a full-year profit warning stemming from the cost of repairing diesel-powered cars. Central bank stimulus: Last week, European Central Bank President Mario Draghi said policy makers will “re-examine� their stimulus program in December. To the markets, that signaled the possibility the bank will consider expanding the size of its €60 billion-euro-a-month asset-buying program or extend the program beyond September 2016, or both. Read: Mario Draghi delivers master class in jawboning the market The U.S. Federal Reserve’s highly anticipated October statement is due later Wednesday. There will be no press conference by Fed Chairwoman Janet Yellen, so investors will look for clues in the statement about the possibility of a interest-rate increase in December. The statement is due at 2 p.m. Eastern Time. “It is very unlikely that the [Fed] would have contemplated a hike,� during this week’s meeting, said Aneta Markowska, chief U.S. economist at Société Générale, in a note. “More critically, officials will have to decide whether they still consider a December rate hike as likely and, if so, come up with a game plan to prepare the markets,� she said. “Our scenario pegs the probability of a 2015 liftoff at only 40%,� Markowska added. Ahead of the Fed decision, the euro EURUSD, +0.1448% bought $1.1048 compared with $1.1041 late Tuesday in New York.

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