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Frankfurt - European stocks pared declines as oil prices reversed earlier losses following a report that Saudi Arabia’s government is willing to cooperate with other producers to maintain stable prices.
Playtech slid 8.4% after calling off a planned acquisition, dragging travel-and-leisure companies to the worst performance of the 19 industry groups on the Stoxx Europe 600 Index.
BP and Eni SpA rose more than 1%, contributing the most to gains in a measure of energy companies and pushing it to the biggest advance on the equity benchmark.
The Stoxx 600 slipped 0.3% to 380.59 at 14:37. Shares earlier pared declines of as much as 0.9% after data showed economic activity in the euro area hit a four-and-a-half-year high this month.
They got a further boost from a Saudi Press Agency report that the world’s largest crude exporter is ready to cooperate with OPEC and non-OPEC producers to maintain a stable oil market.
The Stoxx 600 capped a three-month high last week, after Fed minutes indicated the US economy can withstand higher borrowing costs, and officials stressed increases will be gradual.
Optimism for more stimulus from the European Central Bank (ECB) also helped equities take their rebound since a September low to 13% through on Friday after President Mario Draghi reiterated that policy makers will do what’s necessary to raise inflation.
The dollar advanced after John Williams, president of the Fed Bank of San Francisco, said over the weekend that there was a “strong case” for a rate hike at the Fed’s last meeting of 2015.
Among stocks moving on corporate news, Credit Suisse Group fell 1.7% after completing a capital increase through the sale of 58 million new shares.
RWE AG slid 4.7% after the Frankfurter Allgemeine Zeitung cited the utility’s chief executive officer as saying that uncertainty over Germany’s energy policy is making it difficult to secure financing to expand its business.
Wincor Nixdorf AG rose 5.4% after Diebold agreed to buy its German rival to create the biggest maker of cash machines and security systems.
