LONDON: European stock markets flatlined on Wednesday before a widely expected Federal Reserve interest rate hike, while Dutch voters head to the polls.
London scored slender gains as official data showed the unemployment rate had struck a 41-year low, but Frankfurt and Paris wiped out their opening gains.
The US central bank's Federal Open Market Committee (FOMC) is all but certain to announce an interest rate hike later on Wednesday.
"Today's main event -- apart from the Dutch elections of course -- is the FOMC decision," said Rabobank analyst Philip Marey.
"Last Friday's employment report is likely to have convinced the FOMC to go ahead with the rate hike that they carefully signalled to the markets earlier this month."
In Europe, millions of Dutch voters go to the polls Wednesday in an election overshadowed by a blazing diplomatic row with Turkey, with all eyes on the fate of far-right MP Geert Wilders.
Following last year's shock Brexit referendum and Donald Trump's surprise victory in the US presidential polls, the Dutch vote is seen as a litmus test of the strength of far-right and populist parties ahead of crucial elections in France and Germany later this year.
"Despite the prospect of an incredibly tight Dutch election the DAX and CAC nabbed some early gains," added Spreadex analyst Connor Campbell.
"There is not a lot for the (eurozone) region today ... so any political news out of the Netherlands might be its main driver."
Most stock markets retreated in Asia as nervous investors await the end of the Fed's latest gathering. Traders are mostly interested in what its plans are for future increases, with Fed boss Janet Yellen's news conference in focus.
However, with a slew of strong US data in recent months having already been baked into prices, a global market has eased up in March, dented by concerns about Donald Trump's lack of movement on his promises to ramp up infrastructure spending and cut taxes.
Oil prices rebounded after the International Energy Agency said in its latest monthly report that OPEC crude producing nations were complying with a landmark deal to curb a global supply glut.
The market had dipped after data emerged showing key producer Saudi Arabia increased production last month, raising questions about the OPEC cartel's reduction commitment, just as US shale output expands.
On currency markets the pound edged up after hitting an eight-week low in New York as Britain prepares to trigger its exit from the European Union.
The euro edged up but is struggling as investors nervously await the Dutch election outcome.
- Key figures around 1130 GMT -
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London - FTSE 100: UP 0.2 percent at 7,370.31 points
Frankfurt - DAX 30: FLAT at 11,989.97
Paris - CAC 40: FLAT at 4,972.23
EURO STOXX 50: UP 0.1 percent at 3,402.61
Tokyo - Nikkei 225: DOWN 0.2 percent at 19,577.38 (close)
Hong Kong - Hang Seng: DOWN 0.2 percent at 23,792.85 (close)
Shanghai - Composite: UP 0.1 percent at 3,241.76 (close)
New York - Dow: DOWN 0.2 percent at 20,837.37 (close)
Euro/dollar: UP at $1.0622 from $1.0603 Tuesday
Pound/dollar: UP at $1.2203 from $1.2151
Dollar/yen: DOWN at 114.62 yen from 114.77 yen
Oil - Brent North Sea: UP 88 cents at $51.80 per barrel
Oil - West Texas Intermediate: UP 94 cents at $48.66
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