European stock markets fell Tuesday following a steady showing by Asia's main indices, as the US Federal Reserve prepares to meet over interest rates.

The Fed's two-day gathering is widely expected to conclude Wednesday with the central bank agreeing to trim borrowing costs, as policymakers try to shore up the world's biggest economy.

The dollar dropped against main rivals Tuesday as lower interest rates make the greenback less attractive to investors, while safe haven gold hit yet another record high.

"The Fed's focus appears to have shelved inflation concerns for now, instead concentrating on a stalling (US) jobs market which should lead to a 0.25-percent cut," noted Richard Hunter, head of markets at Interactive Investor.

Wall Street's S&P 500 and Nasdaq indices pushed to fresh reco

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