Global stocks tread water amid political uncertainty

New York - Global stocks treaded water on Wednesday as increasing uncertainty about France's political outlook and fears of another debt crisis brewing in Greece sent yields on European government debt higher.

Equity markets in New York, Paris, Frankfurt and London finished close to flat, although the tech-rich Nasdaq Composite on Wall Street edged to a record close for the second straight day.

Analysts said stock markets are having trouble building momentum due to political uncertainty over the prospects for US President Donald Trump's agenda, and in Europe over the upcoming French election.

"Participants hear repeatedly these days that there is 'political uncertainty' here and abroad," said Briefing.com analyst Patrick O'Hare.

"Those factors aren't going away today and they won't be going away tomorrow either," he said, adding that the US market is "range-bound."

European equities and government bond prices have been hit by jitters over upcoming elections.

"Exuberance over Trump-inspired de-regulation rolled into fears over the economic consequences of election upsets in France, the Netherlands and Germany," said analyst Jasper Lawler at London Capital Group.

Greece's debt saga also reared its head after the International Monetary Fund warned the country cannot reach targets prescribed by the European Union for it to qualify for more bailout cash.

While Athens dismissed the report, the comments sent Greece's cost of borrowing soaring on bond markets and raised the spectre of another crisis for the EU to juggle.

Other eurozone nations have also found themselves paying more to borrow, with Portugal's 10-year bonds now carrying a 4.2% rate of return on the secondary market, the highest since 2014.

Yields on 10-year French bonds shot up to over 1.1% from around 0.8% at the beginning of the year.

European banks were generally lower ahead of earnings reports next. Barclays slid 0.5% and HSBC gave up 0.9% in London.

Deutsche Bank fell 2.1% and Commerzbank shed 1.7% in Frankfurt.

Banks were also under pressure in the US, with JPMorgan Chase and Goldman Sachs each falling almost 1%.