LONDON (CNN) - European markets closed higher on Tuesday, led by technology and oil stocks.
London's FTSE 100 rose 0.9 percent to 5,212.1, the CAC 40 blue chip index in Paris was up 1.5 percent to 4529.2, and Frankfurt's electronically traded Xetra Dax climbed 0.6 percent to 5019.3.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 1.3 percent, with the technology sector among the top gainers with an increase of 4.2 percent.
British fixed-line telecoms giant BT Group dropped 2.9 percent after it said it was cutting 13,000 jobs at its retail division as part of moves announced earlier to cut £850 million ($1.2 billion) costs over three years.
Other telecom stocks rose, with France Telecom gaining 2.7 percent, Finland's Nokia, the world's biggest mobile phone maker, up 4 percent, Swedish rival Ericsson climbed 5.2 percent, and German communications giant Siemens added 1.6 percent.
Semiconductor makers, Philips among them, rose on hopes that talks between two of the major players in the memory chip sector could lead to a reduction of chronic overcapacity.
The world's third-largest DRAM maker, Korea's debt-laden Hynix Semiconductor said it will start two weeks of talks on an alliance with the second-largest DRAM manufacturer, U.S. group Micron Technology.
Germany's Infineon, the world's fourth largest chipmaker and Europe's second largest, which is itself in merger talks with Toshiba, added 7.4 percent. The continent's biggest software maker SAP (FSAP) rose 3.3 percent.
Cap Gemini (PCAP), Europe's biggest computer services company, rose 7.6 percent in Paris, while British engineering and automation systems company Invensys jumped 8.5 percent.
Oil stocks jumped on hopes of more production cuts from Russia.
An increase large enough to satisfy OPEC could lead the oil-cartel to cut production by 1.5 million barrels a day, giving a much needed boost to oil prices.
Royal Dutch, which owns 60 percent of the world's second-largest publicly traded oil company, Royal Dutch/Shell, rose 0.9 percent. Shell Transport & Trading, which owns the remainder of Royal Dutch/Shell, gained 0.5 percent.
BP (BP), Europe's second-biggest oil company, rose 0.1 percent in London and Total Fina Elf (PFP), Europe's third-largest, rose 2.1 percent in Paris.
In other gains, British Airways (BAY), Europe's biggest airline, soared 8.2 percent after investment bank Goldman Sachs raised its recommendation on the stock to a "market perform" from a "market underperform" based on a less severe decline in October passenger traffic than had been expected.
Deutsche Lufthansa (FDHA), Europe's second biggest, 4.8 percent and Air France rose 1.5 percent in Paris.
In the auto sector, Germany automaker DaimlerChrysler dipped 0.7 percent after disappointing sales at its U.S. unit Chrysler. November vehicle sales fell six percent to 173,361 as sales to businesses declined in the wake of the September 11 terror attacks in the U.S.
Luxury car-maker BMW was up 3.2 percent after announcing that its chief executive was resigning after almost three years at the wheel.
AstraZeneca (AZN), Europe's second-biggest drugs company, rose 3.3 percent. The company said late Monday said it was on track to roll out cholesterol-lowering treatment Crestor and two other key drugs. The drugs are a much needed replacement for Losec, the $6 billion-a-year ulcer pill which faces cut-price generic competition.
BHP Billiton (BLT), the world's largest miner, rose 3.5 percent after saying it made a discovery of what appears to be a multi-hundred-million-barrel oil find off Trinidad.
In Amsterdam the AEX index climbed 0.6 percent, the SMI in Zurich was 2.2 percent higher, and Milan's MIB30 index was up 1.2 percent.
In the U.S., the Nasdaq composite rose 12.07 to 1,916.97 in mid-morning trade. The Dow Jones industrial average was down 8.37 to 9,755.59, while the Standard & Poor's 500 lost 0.19 to 1,129.71. 
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