Europe open: Stocks weighed down by selling in China

European stocks started the session on a mixed note following moderate losses in Chinese assets overnight and amid sharp gains in oil futures after non-OPEC producers agreed to cut their output and Saudi said it might slash production by more than it had previously promised.

As of 0900 GMT, the benchmark Stoxx 600 was off by 0.04% to 355.24, while the Dax was losing 0.22% to 11,178.82. Paris´s Cac-40 on the other hand was trading higher by 0.16% to 4,771.97 and the FTSE Mibtel was ahead by 1.20% to 18,512.38.

China´s Shanghai Stock Exchange´s composite index lost 2.47% to 3,152.97, alongside a retreat in the yuan and in Chinese government bonds.

Traders cited poor liquidity ahead of the year-end as one factor behind the losses, together with remarks by US President-elect Donald Trump over the weekend on Fox News Sunday according to which his support for the decades-old 'One China' policy would hinge in part on being able to reach a better deal on trade.

Italian assets on the other hand were benefitting from news that Rome had apppointed PD party foreign minister Gentiloni as Prime Minister. In parallel, speculation was rife that a state bail-in for Banca Monte dei Paschi di Siena would be forthcoming shortly, trigerring a rise of 7.54% in the stricken lender´s shares.

Amundi SA, which is owned by Credit Agricole, said it would acquire UniCredit´s Pioneer Investments arm for roughly €3.5bn.

Royal Philips NV agreed to sell its lighting components business to Apollo Global Management for approximately $2.0bn.

In other corporate news, Allianz Renewable Energy announced it had bought a €330m portfolio of windparks from PNE Wind.

Deutsche Bank's asset management arm was planning to rejoin the group of the world´s top ten firms in that space, Welt am Sonntag cited division chief Nicolas Moreau as having said. Moreau did not comment on rumours about an upcoming flotation of the unit.

Stada has received expressions of interest from Mylan and Novartis, SonntagsZeitung reported.

Oil prices shot higher after non-OPEC producers agreed to reduce their output by 568,000 barrels a day in parallel to the cut announced by the oil cartel itself on 30 November.

Adding to the buying pressure in crude oil futures, shortly after the announcement OPEC´s linchpin Saudi Arabia said it would lower its production by more than it committed to at OPEC´s last meeting.

As of 0917 GMT, front month Brent crude oil futures were higher by 4.85% to $57.10 per barrel on the ICE.