Europe open: Stocks tread water in heavy day for government debt auctions

As of 08:48 BST the benchmark DJ Stoxx 600 was drifting lower by 0.38% or 1.29 points to 334.95, while the Dax was slipping 0.22% to 10,022.93 and the Cac-40 was down 0.24% to 438.44.

Stocks saw solid gains on Tuesday as commodities rebounded and on optimism that Greece may be on the path to obtaining much-needed debt relief in exchange for undertaking the macroeconomic reforms that the country desperately needs.

In parallel, the French government was forced to use article 49.3 of the constitution to pass a controversial labour market reform bill give the lack of support for it within the National Assembly.

However, oil facilities around the area of Fort McMurray were expected to come back on-line in just a matter of days, according to provincial and industry officials, Reuters reported early on Wednesday morning.

That led to a retreat in front month Brent crude oil futures, which as of 09:23 BST were down by 0.77% to $45.17 per barrel on the ICE.

There was little on the economic calendar for Wednesday, with the exception of the latest UK industrial production numbers due out at 09:30 BST.

Chancellor Osborne's testimony to the Treasury Select Committee on the Treasury's recent report on the likely impact of Brexit at 14:00 BST was also be expected to draw attention as the date of the 23 June referendum neared.

However, it was set to be a busy day in the sovereign debt space, with Germany, Italy, France and Spain all set to tap financial markets for fresh funds.

To take note, strategists at Deutsche Bank were cautioning clients about the sharp drop seen in the analysts' profit forecasts since the start of the year. Average earnings per share for Stoxx 600 companies were now expected to rise by just 0.3% this year, down from the rise of about 7% which had been seen.

ABN Amro saw first quarter underlying profits jump 21% to €475m, outpacing estimates of €423m as bad loan impairments at the Dutch lender fell by a sharp 99% thanks to the country's robust economy.

Deutsche Post DHL Group reported an identical 21% rise in its first quarter earnings, adding that it was on track to meet its full-year guidance.

First quarter orders at German construction firm Hochtief soared by 31% buoyed by strong demand from all geographical regions.