On Wednesday European stocks and US index futures declined before the Federal Reserve indicates whether there will be more stimulus measures. The pound weakened, while Greek two-year notes rose for a fourth day. Asian stocks were positive.

The Stoxx Europe 600 Index dropped 0.7% in New York as Royal Philips Electronics NV plunged the most in more than two years. The Stoxx 600’s decline followed the gauge’s biggest gain on Tuesday in two months. Philips, the world’s biggest maker of light bulbs, tumbled 12% in Amsterdam trading after saying it will need to deepen cost-cutting to combat deteriorating demand for lighting and consumer electrical goods such as headphones.

Crude oil in New York fell to $93.31 a barrel before a US government report today that may show stockpiles declined less than analysts forecast last week. Copper lost 0.9%.

European shares retreated, with investors taking a cautious stance ahead of a US Federal Reserve policy meeting that might provide a clearer picture about the pace of economic recovery and give hints about any stimulus measures.

The FTSEurofirst 300 index of top European shares was down 0.3% after rising 1.5% in the previous session.

Investors waited for the outcome of a two-day policy meeting of the US Federal Reserve late on Wednesday and will scrutinize the comments of Chairman Ben Bernanke, who will likely acknowledge renewed weakness in the US economy.

Fed officials cut interest rates to near-zero in December 2008 and will have pumped $2.3 trillion into the economy by the time their bond purchases run their course at the end of this month in the hopes of spurring a stronger recovery.

Asian stocks rose, driving the region’s key index up for a second day, as Greek Prime Minister George Papandreou won a parliamentary confidence vote, moving the country a step closer to avoiding a default on its debt.