Europe close: OPEC+ output cut dents share prices

European shares fell back on Wednesday as investors after OPEC+ announced a larger than expected reduction in their combined output.
The cartel and its Russian-led allied said they would reduce their production by 2.0m barrels a day, roughly twice the amount anticipated.
In response, the pan-European Stoxx 600 index was down 1.02% at 398.91, with all major bourses lower, albeit after two days of sharp gains.
Germany's Dax slipped by 1.21% to 12,517.18 alongside, while the FTSE Mib gave back 1.52% to 21,360.72.
Front-dated Brent crude oil futures rose by 2.16% to $93.78 a barrel on the ICE while euro/dollar ended the day at 0.9885.
"Equities are eating into the gains of the past two sessions, with OPEC’s decision to go for a big cut in output has not helped the buyers to keep control," said IG chief market analyst Chris Beauchamp.
"The prospect of two million barrels of daily oil output being eliminated raises the spectre of inflation again, just as the market began to hope that oil prices at least had calmed down."
Survey data released by S&P Global showed that the eurozone composite PMI fell to 48.1 in September, down 0.1 points from its flash estimate and 0.8pts from the prior month, with both the services and manufacturing PMIs also posting monthly drops.
The manufacturing purchasing managers index for September was revised lower, from a preliminary reading of 48.5 to a final print of 48.4.
September's PMI reading, down from 49.6 in August, marked the biggest contraction in factory activity since June 2020, with further slides seen in both output and new orders as a result of high energy prices and adjustments to firms' operating schedules due to lower order books.
Demand for goods from the eurozone dropped sharply amid high inflation and economic uncertainty that reportedly squeezed client appetite last month.
Investors were also eyeing an OPEC+ meeting on supply following speculation of a large output cut in response to a dimming economic outlook and lower prices.
In equity news, struggling airline SAS edged up after it reached agreements with 10 of its lessors representing 36 aircraft to amend the terms of existing lease contracts.
Tesco shares fell 4.1% after the UK supermarket giant said annual profit would be around the lower end of previous guidance, with significant uncertainties over its second half. The news knocked other retailers, with Ocado and Sainsbury's lower.