European stocks muted after market volatility in China

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European stocks opened flat Wednesday as positive sentiment wavered in the region, spurred on by market volatility in China.

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.hovered near the flatline Tuesday night after a winning session for the major averages.

Oil prices steadied on Wednesday, as traders weighed up developments in the hydrocarbon-rich Middle East and potential Israeli attacks on Iran's oil infrastructure, amid a background of weaker global demand and ample supply. The FTSE 100 was the only major European index to be trading in positive territory on open, up 0.5%, with France'sBoston Federal Reserve President Susan Collins said Tuesday she expects more interest rate cuts ahead as inflation eases and the labor market cools.

The central bank official noted that the Fed's"dot plot" after its September meeting pointed to an additional 50 basis points, or half percentage point, in reductions before the end of the year, though she did not specify whether she agrees with the consensus.The U.S. trade deficit fell more than 10% in August as exports surged, imports declined and the shortfall with China shrunk.

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