LONDON (AFP) - European stock markets closed higher, with London's FTSE 100 finishing at its highest level in more than five years.

Trading was cautious however as traders awaited a decision on US interest rates from the Federal Reserve later on Wednesday.

The US central bank was widely expected to keep US borrowing costs at 5.25 percent, leaving the market to concentrate on the Fed's accompanying statement that is forecast to signal continued worries about inflationary pressures.

London's FTSE 100 index of leading shares closed 0.52 percent higher at 6,214.60 points, its highest level since February 13, 2001.

In Paris the CAC 40 rose 0.33 percent to 5,422.28 while in Frankfurt the DAX added 0.28 percent to end the day at 6,264.92.

The DJ Euro Stoxx 50 index of top eurozone shares increased 0.13 percent to 4,019.14 points.

The euro stood at 1.2584 dollars.

US stocks were mixed Wednesday morning with the Dow Jones Industrial Average down 0.24 percent at 12,099.22 after closing at a record high of 12,127.88 on Tuesday.

The leading blue-chip index has soared to record heights amid a flurry of upbeat corporate earnings reports from the likes of McDonald's, Coca-Cola and JPMorgan Chase.

The technology-stacked Nasdaq composite was up 0.35 percent at 2,353.04 while the broad-market Standard and Poor's 500 index was 0.10 percent higher at 1,378.74.

Japanese share prices closed with a fall on Wednesday as investors remained cautious ahead of a US Federal Reserve interest rate decision, dealers said.

In London, Tate and Lyle led the FTSE 100 -- Europe's biggest sugar refiner surging 3.76 percent to 801 pence after announcing it was exploring the full or partial disposal of its starch operations in Europe owing to recent changes in the EU regulatory regime for sugar.

The FTSE won broad support from mining stocks, which rose in reaction to higher commodity prices. Xstrata jumped 1.90 percent to 2,254 pence and Rio Tinto won 1.58 percent to 2,895 pence.

In Asia, The Tokyo Stock Exchange's benchmark Nikkei-225 index closed down 0.48 percent at 16,699.30 points on Wednesday.

Hong Kong's key Hang Seng Index closed flat as many investors stayed on the sidelines ahead of the Fed decision, dealers said.

Elsewhere in Europe, in Madrid the Ibex 35 index advanced 0.42 percent to 13,636.3 points to hit a new record, in Milan the SP-Mib closed 0.28 percent higher at 39,407 points and in Amsterdam the AEX index fell 0.04 percent to 492.71 points.

The Swiss SMI index gained 0.23 percent to 8,682.5 points while the Bel 20 index in Brussels climbed 0.26 percent to 4,174.17 points.

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