×

Europe ends mixed; Petrofac loses 26%

European shares closed mixed on Monday, with sentiment boosted by speculation of more credit easing in the euro zone and better-than-expected data from Germany.

The pan-European Euro Stoxx 600 Index closed around 0.1 percent higher at 345.72, and most of the major European bourses also closed up.

The French CAC and German DAX both closed provisionally 0.6 percent higher.

The Spanish IBEX outperformed, closing provisionally 1.2 percent higher, boosted by a strong performance from banks including Banco Santander, Bankia and Banco Popular.

Overall, there was a rally in in the banking sector, with investors continuing to speculate that more stimulus will be injected in the euro zone economy. French lenders like Credit Agricole and Societe Generale were trading higher by around 2 percent.

Symbol
Name
Price
 
Change
%Change
Volume
FTSE
---
DAX
---
CAC
---
IBEX 35
---

However, the Italian FTSE MIB slipped around 0.2 percent and 0.1 percent respectively.

London's FTSE 100 closed unofficially 0.3 percent down. It was dragged lower by energy services group Petrofac which warned that its profits are set to be lower than expected. Petrofac shares plummeted to close around 26 percent down.

Read MoreWhy the Petrobras scandal is shaking Brazil

A German Ifo business climate index was released in morning trade with the figure showing a rise to 104.7 in November versus a consensus forecast of 103.0. There was also a rally

Read MoreChina rate cut no magic bullet for economy

The gains come after markets surged on Friday when a China rate cut and dovish words by Mario Draghi, the president of the European Central Bank, boosted sentiment.

U.S. stocks rose on Monday, with benchmark indexes furthering their record-setting climb, as investors drew cheer from central-bank action to boost the global economy and from deal activity.

BT shares rise

BT shares were sharply higher by 3 percent after it announced that it was in talks with Telefonica shareholders to possibly buy rival network O2.

Financial services firm Friends Life rose around 6 percent on Monday, while Aviva shares slipped more than 5 percent on news of a possible merger deal between the two.

Read MoreBTconfirms deal talks with Telefonica's O2

Follow us on Twitter: @CNBCWorld

Oil price eyed

International negotiators decided to extend talks on Iran's nuclear program on Monday. The new deadline will now be towards the end of June, according to Reuters.

Read MoreIran nuclear talks extended through end of June

Investors will be watching OPEC's meeting in Vienna on Thursday (November 27) for signs that the group will decide to cut oil production. OPEC's biggest producer Saudi Arabia has said it is comfortable with lower oil prices. However, Iran is one of the countries putting pressure on fellow OPEC members to reduce oil output to stem falling prices.

In other news, worldwide business confidence slumped to a five-year low, according to the Markit Global Business Outlook Survey, published on Monday.