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NEW YORK (CNNMoney) -- U.S. stocks were set for a flat open Wednesday Europe's debt crisis continues and traders prepare to close out the third quarter.
Investors will be watching Europe, where public outcry against austerity measures shows the difficulty of adopting reforms.
On Wednesday, a general strike began in Greece. Hours earlier, anti-austerity protests in Madrid turned violent ahead of the Spanish government's intended release of its 2013 budget plans.
Yields on 10-year Spanish bond shot up more than 20 basis points to 6.01% after the leader of the country's richest region called for early elections, showing a lack of confidence in Prime Minister Mariano Rajoy.
"There's a huge amount of nervousness," said Gerry Davies, a London currency analyst for ForexLive. "Spain needs a bailout, but they're trying to hold off asking for one, because they're worried about the conditionality of any bailout. What you've got is a game where Rajoy wants the best deal he can get, whereas the rest of the EU would like them to ask and settle the markets down."
Following a meeting with German Chancellor Angela Merkel on Tuesday, European Central Bank President Mario Draghi said that while the ECB's bond-buying program is supporting financial markets, it must be coupled with "decisive measures by governments to address fundamental challenges and complete the euro-area's institutional architecture."
European stocks fell in morning trading. Britain's FTSE 100 lost 1%, the DAX in Germany dropped 1.3% and France's CAC 40 tumbled 1.9%. European turmoil pushed the dollar up against the euro. It also gained versus the British pound but fell against the Japanese yen.
Meanwhile, China stocks continue to struggle on economic growth concerns. Making matters worse, China's territorial dispute with Japan over islands that sit over a vast natural gas reserve are worsening trade relations and hurting companies in both countries.
Asian markets ended in the red, with the Shanghai Composite down 1.2%, the Hang Seng in Hong Kong shed 0.8%, and Japan's Nikkei dropped 2%.
Related: China stocks stuck in massive rut
Back in the United States, reports on tap Wednesday include new home sales and mortgage applications.
At 10 a.m. ET, the U.S. Census Bureau will release data on new home sales for August, which are expected to come in at an annual rate of 380,000, according to a survey of analysts by Briefing.com. The Mortgage Bankers Association will also release its weekly application index.
U.S. stocks lost steam Tuesday afternoon and finished at two-week lows, as worries about global economic growth overshadowed positive reports on the U.S. housing market and consumer confidence.
Companies: Google (GOOG, Fortune 500) shares hit a fresh all-time intraday high of $764.89 Tuesday, but pulled back to finish the day at $749.16, just below the record closing price reached Monday. Google's stock has rallied 16% this year as the company continues to dominate in online searches and makes strides with its Android mobile platform.
Commodities: Oil for November delivery fell 69 cents to $90.68 a barrel.
Gold futures for December delivery rose 20 cents to $1,766.60 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury rose slightly, pushing the yield down to 1.65% from 1.68% late Wednesday.
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