Europe closes higher as Trump rally continues; oil prices rise; mining stocks weigh

European stocks closed higher on Tuesday as President-elect Donald Trump's impact on the market continued its momentum and oil prices rebounded.

Mining stocks weigh

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The pan-European STOXX 600 closed 0.27 percent higher provisionally. Sectors were mixed although basic resources were down 3.77 percent after surging last week.

London-listed miner Antofagasta was near the bottom of the STOXX 600 after HSBC began coverage of the stock with a "reduce" rating. Other basic resource stocks including Anglo American, and Glencore were deep in negative territory as the strong dollar weighed on metal prices.

Volatile swings in commodities appeared to drive investors into Europe's oil and gas sector - which closed up 2.85 percent - with speculation that OPEC will indeed carry through a production cut later this year. Brent crude prices were up 4 percent as the European session closed, and were trading around $46.26 a barrel while WTI was up 4.5 percent and trading at approximately $45.27 a barrel.

In the U.S., stocks opened mostly higher but the Dow's chances of a 7-day winning streak looked optimistic.

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Traders continue to watch Trump's economic policies closely because of the effect it could have on monetary policy. The Republican has said that he planned to spend on infrastructure and cut taxes to stimulate the economy. Increased fiscal stimulus could have an impact on the Federal Reserve's interest rate hiking path.

Nokia shares fall

Nokia shares fell 3.8 percent on Tuesday after the Finnish company reported that net sales in its key networks business were set to decline in the full-year 2017. The network equipment maker also announced a 1 billion euro ($1.08 billion) share buyback program.

EasyJet reported a decline in revenue for the 12 months to the end of September but reported a record number of passengers and load factor. The budget airline warned on headwinds for 2017, however, shares ended 5.3 percent higher.

Elsewhere, Fiat Chrysler and Cummins Inc have been accused via a class-action lawsuit in the U.S. of knowingly deceiving consumers and regulators of "illegally high levels of diesel emissions in their vehicles." Both firms plan to fight the lawsuit and deny the claims. Shares of Fiat Chrysler were down 0.79 percent at the close.

Banks negative

The banks were underperforming on Tuesday. Shares of Societe Generale were in negative territory but pared losses to finish fractionally higher after reports that France's finance ministry had started a process to recoup 2.2 billion euros worth of tax deductions given to the lender after losses caused by rogue trader Jerome Kerviel.

And Italy's Unicredit closed deep in the red after Exane BNP Paribas cut its price target for the stock. Unicredit is planning to raise 13 billion euros to boost its finances, the Wall Street Journal reported on Tuesday.

On the data front, euro zone third-quarter gross domestic product rose 1.6 percent year-on-year, and 0.3 percent quarter-on-quarter.

Elsewhere, U.K. consumer prices rose 0.9 percent year-on-year in October, according to the Office for National Statistics, missing analyst forecasts of 1.1 percent year-on-year.

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