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European markets steadier after wild markets

London - Europe's main stock markets steadied on Wednesday after recent volatility as traders react to concerns over the outlook for global economic growth.

London's benchmark FTSE 100 index dipped 0.06% to stand at 6 368.64 points approaching midday in the British capital, as sterling came under pressure from the euro and dollar.

The CAC 40 in Paris nudged up 0.06% to 4 083.54 points and Frankfurt's DAX 30 rose 0.22% to 8 906.45 compared with Tuesday's closing level.

Madrid gained 0.06% and Milan grew 0.35%.

"While the general tone in the markets has been more positive this week, investors remain on edge particularly when it comes to the eurozone," said Craig Erlam, market analyst at Alpari trading group.

European stocks had shot higher on Tuesday after Chinese economic growth data boosted optimism over the global economic outlook. They were lifted also by rumours that the European Central Bank could step up its monetary stimulus, dealers said.

The idea, reportedly under discussion at the ECB but not yet decided on, comes as the central bank struggles to combat deflation pressures and shore up growth in the 18-nation eurozone.

Equities had last week been rocked by near panic as traders worried that the eurozone could return to recession.

In trading on Wednesday, shares in British American Tobacco shed 3.71% to 3 338 pence, topping the FTSE 100 losers board, after the maker of Lucky Strike and Dunhill cigarettes reported a sizeable drop in sales.

Total fell 0.78 to €44.1, with sources saying that the French oil group had named Patrick Pouyanne, currently head of refining and chemicals, as its new chief executive while former CEO Thierry Desmarest had been appointed chairperson.

The nominations at an emergency meeting of the Total board of directors came after chief executive Christophe de Margerie died in a plane crash in Moscow on Monday.

Shares in French automaker PSA Peugeot Citroen were up 0.15%, down from early gains, in response to lacklustre quarterly results showing a jump in sales in China and by car parts unit Faurecia. The group raised slightly its expectations for growth of its main European overall market, but reported sales falls in several other markets.

In foreign exchange, the euro fell to $1.2692 from $1.2714 late in New York on Tuesday.

The European single currency gained to 79.09 British pence from 78.90 pence. The pound was worth $1.6047, down from $1.6113 on Tuesday.

On the London Bullion Market, the price of gold dropped to $1 246.75 an ounce from $1 250.25.

The pound struggled as markets concluded that the Bank of England (BoE) was in no rush to start hiking its main interest rate.

BoE policymakers voted 7 to 2 in favour of keeping its key lending rate at 0.50% at its October meeting, repeating the voting pattern over the previous two months, minutes released on Wednesday showed.

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