The City of London skyline at sunset.
Gary Yeowell | Digitalvision | Getty Images
LONDON — European stocks are expected to hover around the flatline at the open on Wednesday as markets lack direction during a difficult week.
The U.K.'s FTSE index is seen opening 0.16% higher, Germany's DAX just above the flatline, France's CAC 40 just below it and Italy's FTSE MIB flat, according to data from IG.
It's been a difficult week for regional markets after the shock resignation of French Prime Minister Sebastien Lecornu on Monday morning, before he'd even presented the fractious National Assembly with budget plans — which have undone two previous short-lived administrations.
In a surprise twist, however, French President Emmanuel Macron gave Lecornu another 48 hours for "final discussions" with rival parties to try to break the impasse. Lecornu is due to report to Macron on Wednesday evening on any potential breakthrough.
The U.K. has been left fearing for its beleaguered steel industry after the European Union announced plans on Tuesday to reduce tariff-free quotas on imported steel, and to hike tariffs from 25% to 50% on any excess imports.
The industry is already facing significant pressure from unsustainable levels of global overcapacity, the bloc said. The U.K.'s steel industry warned that the EU measures could be an existential blow to the already limping sector.
Asia-Pacific stock markets traded flat overnight, breaking ranks with Wall Street, which saw losses Tuesday.
U.S. stock futures were little changed on Tuesday night after the S&P 500 snapped a seven-day winning streak. A fall in Oracle shares called into question the sustainability of the artificial intelligence trade. The government shutdown is also in its second week.
European data releases on Wednesday include German industrial production figures. There are no major earnings releases.
English (US) · 