European Markets Stabilise before UK Budget

European stock markets held steady on Wednesday as London waited on Britain's budget and Frankfurt digested solid German data.

London stocks turned flat as dealers sat on their hands before the government's latest taxation and spending plans.

Finance minister Philip Hammond, who is widely expected to exude caution as the country prepares to trigger Brexit, will unveil his spring budget before parliament at 1230 GMT. 

Chancellor of the Exchequer Hammond, who took control at the Treasury following last June's EU exit vote, is not expected to present any major surprises this time around, with Britain on the cusp of triggering Article 50 of the EU's Lisbon Treaty by the end of March.

"The market focus turns to the chancellor's speech today, with the spring budget set to be delivered under the shadow of this month's expected activation of Article 50," said analyst Joshua Mahony at traders IG.

"The uncertainty associated with the forthcoming Brexit negotiations means that Hammond is unlikely to go all out for now, instead holding back capacity to boost the economy if things turn sour down the line."

In eurozone deals meanwhile, Frankfurt stocks rose as official data painted a rosier picture of the currency bloc's biggest economy.

Industrial production in Germany grew 2.8 percent in January, preliminary data showed Wednesday, comforting fears that global economic uncertainty could put the brakes on activity.

"After yesterday's shocking new orders data, today's industrial production data brings some relief for the German economy," said ING Diba bank analyst Carsten Brzeski.

Overall, trading in European stock markets was calm on Tuesday as investors waited on this week's interest rate call in the eurozone on Thursday and crucial jobs data in the United States on Friday. 

- Asia mixed -Asian markets diverged Wednesday with patchy gains as drugs firms were hit by US President Donald Trump's promise to slash prices.

This week has seen equity and forex traders take a step back after February's rally, as the Federal Reserve prepares for a much-anticipated policy meeting on March 14.

Pharmaceutical firms saw their share prices slide on Tuesday after Trump tweeted: "I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!"

That came as Republicans released plans to tear up key parts of Obamacare, fuelling worries about cutbacks.

The losses seeped through to Asia on Wednesday but news that Chinese imports had surged 38.1 percent in February -- almost twice as much as forecast -- provided a platform for recovery.

The import jump, along with a 1.3 percent fall in exports, led to a shock trade deficit -- its first in three years -- and fuelled hopes that the world's number two economy and key driver of global growth is showing signs of improvement on the domestic front.

- Key figures around 1115 GMT - London - FTSE 100: FLAT at 7,336.87 points

Frankfurt - DAX 30: UP 0.3 percent at 11,997

Paris - CAC 40: DOWN 0.1 percent at 4,948.78

EURO STOXX 50: UP 0.1 percent at 3,388.89

Tokyo - Nikkei 225: DOWN 0.5 percent at 19,254.03 (close)

Hong Kong - Hang Seng: UP 0.4 percent at 23,786.31 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,240.66 (close)

New York - Dow: DOWN 0.2 percent at 20,924.76 (close)

Euro/dollar: DOWN at $1.0557 from $1.0568

Pound/dollar: DOWN at $1.2163 from $1.2203

Dollar/yen: UP at 114.03 yen from 113.95 yen

Oil - Brent North Sea: DOWN 23 cents at $55.69 per barrel

Oil - West Texas Intermediate: DOWN 29 cents at $52.85

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