European stocks muted after market volatility in China

Sentiment was muted among European markets Wednesday as positive sentiment wavered in the region, spurred on by volatility in China.

The pan-European Stoxx 600 index opened just 0.06% higher but strengthened slightly to trade up 0.14%.

Regional markets traded and closed lower Tuesday, with all major bourses and the majority of sectors trading in the red during the day. The lackluster session came after a shaky start to the week, with investors responding to a slowdown in China’s stimulus rally.

Chinese stocks sold off in another volatile day of trading amid mixed Asia-Pacific markets overnight with the mainland CSI 300 dropping 6%, and Hong Kong’s Hang Seng index extending its losses, falling 2.5%. On Tuesday, the HSI recorded its worst day in 16 years, closing 9.41% lower.

U.S. stock futures hovered near the flatline Tuesday night after a winning session for the major averages. Wall Street is coming off a strong session for the major averages Tuesday as tech stocks outperformed, and oil prices eased off their highs. 

Events to watch out for in Europe today include the German government’s latest economic forecasts and the latest meeting of NATO defense ministers in Belgium.

— CNBC’s Sarah Min and Lim Hui Jie contributed reporting to this market report.