LONDON ( The Deal) -- European stocks were mixed on Tuesday, with U.K. indices leading the gainers amid a rebound in shares of energy and resources companies.
The FTSE 100 in London gained 1.09% to 6,728.60. In Frankfurt, the DAX slipped 0.24% to 9,940.73. The CAC 40 in Paris climbed 0.28% to 4,389.51.
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Oil producers BP (BP) , Royal Dutch Shell (RDS.A) and Tullow Oil (TUWOY) rebounded from steep losses after the Organization of Petroleum Exporting Countries last week declined to cut output amid tumbling prices. Rival oil producer Total (TOT) , in Paris, also rose even as oil prices slipped further.
In London, insurer Friends Life was up about 5% and Aviva (AIVAF) rose well over 2% after the two companies agreed on a fusion that would entail Aviva offering about 5.6 billion pounds ($8.8 billion) in shares for its smaller peer.
But postal services operator Royal Mail (ROYMY) was down almost 3% after communications regulator Ofcom declared that the company's "universal service" obligation to deliver parcels and letters six days a week at the same price throughout the U.K. wasn't under threat and declined to impose new conditions on the company's direct-delivery competitors.
In Frankfurt, Deutsche Lufthansa (DLAKY) fell 1.3% as the airline predicted that a two-day pilots' strike would disrupt the plans of about 150,000 passengers.
In Russia, stock indices edged higher despite a government prediction that the economy may contract next year by 0.8%, instead of expanding by 1.4% as previously predicted. International Monetary Fund Managing Director Christine Lagarde warned on Monday that tumbling oil prices would be bad for Russia, while acting as a positive for the world economy on a "net-net basis."
In the eurozone, figures from the European Commission's statistics arm showed that producer prices fell a greater-than-expected 0.4% month on month. All eyes will be on the European Central Bank's Thursday meeting, where investors are hoping policy makers will sanction purchases of government bonds.
In China, mainland indices rose sharply and the Hang Seng closed up 1.23% at 23,654.30 amid hopes China's central bank will implement further stimuli after last month's rate cut.
In Tokyo, the Nikkei 225 gained 0.42% to 17,663.22.