(fxcue news) - European stocks are seen opening little changed on Wednesday, with U.S. fiscal concerns, geopolitical tensions and the Fed outlook likely to be in focus. U.S. President Donald Trump's sweeping tax and spending bill is one step closer to a full vote in the House of Representatives, with economists warning the proposal would add more than $2.5 trillion to the federal debt—currently at an all-time high of $36.8 trillion—over the next decade. According to an interview published by the Financial Times today, International Monetary Fund First Deputy Managing Director Gita Gopinath said that U.S. fiscal deficits are too large and the country needs to tackle its "ever-increasing" debt burden. Federal Reserve Bank of St. Louis President Alberto Musalem has warned in remarks prepared for delivery at the Economic Club of Minnesota that the risks of getting inflation wrong are high and that the Fed's credibility could be hurt as a result. On the geopolitical front, CNN reported citing U.S. officials that Israel is preparing to strike Iranian nuclear facilities and that the final decision will largely hinge on the outcome of ongoing U.S.-Iran negotiations regarding Tehran's nuclear ambitions. Elsewhere, the EU and Britain announced new sanctions against Russia without waiting for Washington to join them after Ukraine's Volodymyr Zelensky warned Vladimir Putin is "trying to buy time" to continue his war. Asian stocks traded higher, though Japanese markets declined as the yen strengthened for a seventh consecutive session, hitting a two-week high against a broadly weaker U.S. dollar. Data showed Japan's export growth slowed to just 2.0 percent year-on-year in April, marking the weakest pace since October 2024. Oil prices were up nearly 2 percent in Asian trade amid fears that escalating geopolitical tensions may put supply at risk in the key Middle East producing region. Gold hovered close to $3,300 per ounce after rising for a second day on Tuesday as uncertainty grew over U.S. tariffs and Russia-Ukraine ceasefire talks. The Office for National Statistics publishes U.K. consumer price data for April later in the day. Consumer price inflation is forecast to rise to 3.3 percent from 2.6 percent in March. Overnight, U.S. stocks fell slightly as investors dumped tech stocks after recent strong gains. The Dow dipped 0.3 percent to snap three consecutive sessions of gains under pressure from rising Treasury yields as President Trump increased the pressure on House Republicans to pass his sweeping bill to extend trillions of dollars of tax cuts and slash government spending. The tech-heavy Nasdaq Composite shed 0.4 percent after a two-session winning streak and the S&P 500 dropped 0.4 percent to snap a six-day rally. European stocks closed at near nine-week highs on Tuesday after some positive corporate earnings and cautious optimism over the EU-U.K. trade deal. The pan European STOXX 600 gained 0.7 percent. The German DAX rose 0.4 percent, France's CAC 40 climbed 0.8 percent and the U.K.'s FTSE 100 advanced 0.9 percent.