2018.05.1620:23:00UTC+00European Markets Mostly Higher as Euro Weakens Due to Italian Worries

European stocks advanced on Wednesday, supported by a decline in the euro as political jitters in Italy fueled concerns of a new eurozone crisis. Traders also priced in the return of concerns over North Korea and a batch of upbeat corporate news.

The pan-European Stoxx 600 closed provisionally up by 0.29 percent with the various sectors moving in different directions. The FTSE 100 closed provisionally up by 0.26, while Germany's Dax climbed 0.18 percent and the French CAC 40 ended higher by 0.3 percent.

Italy's FTSE MIB index tumbled 2.4 percent on concerns over its future government.

The Italian right-wing Lega party denied reports that it's seeking a 250 billion euro ($296.16 billion) debt write-off if it becomes part of a power-sharing deal with the anti-establishment Five Star Movement (M5S). But those efforts were not enough to dampen concerns over its economic future.

The yield on 10-year Italian government bonds climbed 17 basis points to 2.112 percent, according to Tradeweb.

Across the European index, Saipem bucked the struggle of fellow Italian companies to finish up by almost 12 percent. This followed a rating upgrade. Micro Focus lost some of its initial strength at the open to trade just above 6.2 percent by the end of the session. This was also after a positive trading update.

Shares of Burberry Group climbed 3.6 percent after the luxury goods company posted a rise in full-year profit and said it would start a new 150 million pound ($202.8 million) share buyback.

Paddy Power Betfair gained 6.3 percent after the gambling company confirmed it is in talks about a potential merger of its U.S. business with FanDuel Inc. Paddy Power shares are now up 13 percent this week, boosted by a U.S. Supreme Court ruling on Monday that might bring about widespread American sports betting.