Europe midday: Shares rally as energy stocks gain on oil price rebound

European stocks advanced, boosted by energy stocks as oil prices recovered.

Oil prices picked up after Saudi oil minister Ali Al-Naimi said at a conference in Abu Dhabi at the weekend that the sector will recover and fossil fuel will remain the main source of energy for decades to come.

Speaking on the sidelines of the conference Mohammed Al Sada, Qatar’s energy minister, urged producers from outside of OPEC to cut their output. The Organization of Petroleum Exporting Countries last month held back on slashing its production target of 30m barrels a day.

Brent crude futures rose 0.3% to $61.55 per barrel, according to ICE, after reaching a five-year low last week. The rouble rose on the back of the bounce in oil prices following last week’s plunge.

In the Eurozone, an index on consumer sentiment is expected to rise to -11 in December from -11.6 in November.
The report comes after upbeat data out of Germany last week and comes amid speculation that the European Central Bank will introduce full-blown quantitative easing in January.

In the US, a report in due out in the afternoon may show existing home sales fell 1.1% month-on-month in December following a 1.5% increase in November.

Separately, data on Tuesday is projected to reveal US economic growth was faster than initially estimated in the third quarter.

Roche, Daimler

Roche Holding AG jumped after one its drugs for treating cervical cancer was approved in Switzerland.

Daimler AG rallied after its chief financial officer said to Boersen-Zeitung that the German carmaker may raise its 2014 dividend.

Delta Lloyd NV declined after saying the Dutch central bank ordered it to dismiss its chief financial officer by 2016.

The euro rose 0.25% to $1.2259.