Europe close: Stocks find a bid, as does gold

(Sharecast News) - European stocks caught a bid on Wednesday, after turmoil in the bond markets over fiscal stability concerns in several countries appeared to ease slightly.

The pan-regional Stoxx 600 index was up 0.66% to 546.78. Germany's DAX was 0.46% stronger and France's CAC 40 rose 0.86%.

In parallel, the yield on the benchmark 10-year French government bond declined by four basis points to 3.547%.

Gold futures however gained during the session, reaching a fresh record high of $3,620.20/oz. on COMEX.

Earlier in the week they had managed to punch above technical resistance around the $3,550 mark.

Analysts at SP Angel highlighted recent concerns around Western governments' debt sustainability and recent data showing how the Reserve Bank of India had been opting to raise its gold holdings over US Treasury bills in its foreign exchange reserves.

Brent crude futures meanwhile gave back 1.75% to finish at $67.39 a barrel on ICE.

Two sources had told Reuters that OPEC+ was planning to discuss a fresh output cut, Axel Rudolph at IG noted.

In economic news, the eurozone economy expanded in August, a closely-watched survey showed on Wednesday, but at a sluggish pace that narrowly missed expectations.

The seasonally-adjusted HCOB Eurozone composite PMI output index was 51.0 last month, a 12-month high. However, August's print was up only marginally on July's 50.9, and narrowly missed expectations for 51.1.

On the equities front, Swedish electronics manufacturing firm Mycronic led the gainers early in the session but its shares finished in the red.

UK insurer and asset manager M&G fell as half-year profits missed estimates.

Lufthansa shares dipped as Germany's VC pilots' union called for a strike after talks with the airline on its pension scheme collapsed.