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Germany's business confidence boosts stocks

London - Encouraging German data helped to lift eurozone stock markets on Monday, while London dipped as a profit-warning by Petrofac sent the energy-services group's shares plunging by a quarter.

Indices continued to win support after the European Central Bank on Friday signalled that it was ready to act quickly to deter deflation and after China cut interest rates for the first time in more than two years.

Frankfurt's DAX 30 won 0.78% to 9 808.67 points and the CAC 40 in Paris gained 0.94% to stand at 4 388.11 compared with Friday's closing value.

London's benchmark FTSE 100 index meanwhile was down a slight 0.02% to trade at 6 749.24 points around midday in the British capital.

Monday's data out of Germany gave "reason to be more optimistic, as all three indicators - business climate, current assessment and expectations - rose on the month and easily exceeded expectations", said Craig Erlam, market analyst at Alpari traders.

Business confidence in Germany appears to be stabilising after recent declines, with the Ifo business climate index rising in November for the first time in seven months.

In an encouraging sign for Europe's biggest economy, and therefore the eurozone as a whole, the closely watched barometer beat expectations and rose to 104.7 points in November from 103.2 points in October, the Ifo think-tank said in a statement.

Following the update, the euro was trading at $1.2408, up from $1.2390 late in New York on Friday.

The European single currency gained to 79.28 British pence from 79.16 Friday.

The British pound edged up to $1.5652 from $1.5651.

On the corporate front, shares in Petrofac sank by a massive 24.94% to 895.5 pence in London midday deals.

"The firm has painted a grim picture for 2015, warning of an expected profits decline of around 25%," said Daniel Sugarman, market strategist at trading group ETX Capital.

"Falling oil prices, due in part to both a huge boost in US oil production and a decline in Chinese demand, show relatively little sign of improving drastically in the near future - something bound to affect Petrofac's bottom line."

Market focus this week is largely on Opec, the oil producing cartel that gathers in Vienna to decide on whether to cut output in a bid to support crude prices.

Opec will hold one of its most significant meetings in recent years on Thursday, with members under pressure to address slumping prices and protect their precious revenues.

The oil market has tumbled 30% since June on the back of plentiful supplies, a stronger dollar and weaker demand growth.

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