European shares flat as investors await US-Iran deal details; BMW slides

European shares were muted at the open, with auto stocks leading losses after BMW cut its annual forecast, while investors await key economic and geopolitical developments.

European ​shares were muted at the open on Wednesday as investors awaited details of the U.S.-Iran peace agreement and the ‌Federal Reserve's outlook on monetary policy, while auto stocks fell after carmaker BMW cut its annual forecast.

The pan-European STOXX 600 index edged 0.05% higher to 636.29 points by 0710 GMT. Auto stocks ‌led sectoral losses, declining 2.3%, with BMW dropping 7.3% after the premium carmaker ‌lowered its annual profit outlook due to weakness in the Chinese market and impact of the Iran war. Separately, a survey showed that German automotive suppliers expecting business conditions to worsen over the next year now outnumber ⁠the ​industry's optimists, as domestic ⁠hiring sinks to a new low and investment in the sector moves overseas. Global investors are on edge ⁠ahead of the signing of a peace deal between the U.S. and Iran on Friday ​after the countries signed a preliminary agreement to end the conflict. The sharp drop in ⁠oil prices since then has lifted global sentiment, with the benchmark STOXX 600 trading near an all-time high. ⁠Barclays ​was the latest brokerage to announce that it has closed its underweight position on European stocks. The focus later in the day will be on the Fed's ⁠monetary policy decision, with the spotlight on new Chair Kevin Warsh's commentary on the interest rate ⁠outlook. Among individual ⁠stocks, Leonardo rose 1.7% after the Italian government gave its conditional approval to the joint venture between the state-controlled defence group and Turkey's Baykar.