European shares were set for a mixed open on Wednesday, staying close to 29-month highs, as worries about the effect of China raising rates were offset by some strong corporate data.
European shares slipped back from 29-month highs on Tuesday, after China increased interest rates again to fight stubbornly high inflation, raising concerns about economic growth.
However, some upbeat corporate news helped limit losses for key indexes.
UBS rose 4.3 percent after saying it expects to win more client money for its wealth management business in 2011.
UBS CEO Oswald Gruebel told CNBC in an interviewhe was positive the bank could improve its performance in 2011.
ArcelorMittal, the world's largest steelmaker, also issued a rosy outlok,forecasting a faster than expected recovery in demand and prices at the start of 2011.
On Wednesday, investors will turn their attention to a key macroeconomic indicator, Germany's influential Ifo business climate index, which will offer further clues on the health of the euro zone's biggest economy.
Also on the agenda are Germany's manufacturing turnover report and foreign trade data for the country.
The UK also releases trade data.
European Central Bank Governing Council member Lorenzo Bini Smaghi speaks at the London Business School on Wednesday evening. He will discuss sovereign risk and the euro.