Europe Stocks Seen Flat After Hitting 27-Month High

European shares were seen opening little changed Wednesday, with investors avoiding strong bets at the tail end of the year.

Bryce Duffy | Stone | Getty Images

European shares ended at a fresh 27-month high on Tuesday, with mining shares boosted by strong metals prices while Finnish forestry group UPM-Kymmene rose after saying it was buying a debt-laden rival.

Earlier on Tuesday, Spain completed its last scheduled debt auction for 2010. Yields rose and analysts warned of a tough 2011.

Moody's added to unrest in financial markets on Tuesday when it said it would put Portugal - widely seen as another potential victim of Europe's debt crisis - under review for a downgrade. The euro fell on the news.

The rating agency said the rating could be adjusted downwards "by a notch or two" because of worries about Portugal's ability to raise capital from markets at a "sustainable price."

"I think we're going to see Portugal taking up funds from the EU and the IMF, Michael Gallagher, director of research at IDEAglobal told CNBC.

Investors will be keeping an eye out for final figures on third-quarter economic growth in the UK as well as the minutes from the Bank of England's latest monetary policy meeting.

The latter could offer clues on the bank's expectations for inflation and the pace of recovery.