MID-SESSION UPDATE
London shares consolidated gains on Monday as upbeat UK retail sales data helped traders to shrug off Spanish political uncertainty.
The FTSE 100 Index gained 57.14 points to 6109 in early trading, Germany's Dax lifted 99 points and France's CAC-40 rose 26 points.
But Spain's Ibex stock index dropped 256 points after the country's general election produced an inconclusive result.
Mariano Rajoy's ruling right-of-centre People's Party gained most votes but failed to win a parliamentary majority.
In the UK, high street sales growth accelerated in the year to December, according to the CBI’s latest monthly distributive trade survey, which covers the crucial run-up to Christmas.
Retail sales volumes picked up during the month and were slightly above the average for the time of year, albeit below retailers’ expectations, the survey of 118 firms showed.
But the growth in volumes is expected to slow somewhat next month, the CBI said.
Following Black Friday, internet sales volumes rose at their quickest pace since April, with the pace of growth expected to hold broadly steady in January.
Shares in Dixons Carphone (LON:DC.) lifted 2.6p to 479.7p as RBC Capital Markets chose it as the broker's general retail top stock pick for 2016.
RBC analyst Claire Huff said: "We think Dixons Carphone had a strong Black Friday weekend. John Lewis also commented on a strong weekend for electricals."
Markets fell initially after the Spanish poll produced an inconclusive result, with Mariano Rajoy's ruling right-of-centre People's Party gaining most votes but failing to obtain a parliamentary majority. Spain's Ibex stock index dropped 256 points.
Brent crude fell to its lowest intra-day level since July 2004 after a report on Friday from oil services company Baker Hughes showed the US oil rig count climbed for the first time in five weeks.
Research analyst at foreign exchange firm FXTM, Lukman Otunuga, said: "This latest increase in oil rig counts, combined with the consistent rise in crude oil inventories, has led to intensifying concerns over the aggressive oversupply in the markets. Prices may remain vulnerable and open to further losses."
Despite that, shares in BP (LON:BP.) managed to stay in the black, rising 3.5p to 342.85p. But Royal Dutch Shell's stock backtracked 2.5p to 1466.5p after the Anglo-Dutch major pressed ahead with moves to seek approval for its £55bn tie-up with BG Group (LON:BG.) despite investor unease.
Investors switched on to shares in ITV (LON:ITV) by 11.2p to 275p on a weekend report that Comcast's NBC Universal had held talks with the UK broadcaster about a potential merger.
Elsewhere, shares in Oilex (LON:OEX) spurted 0.02p to 0.6p on news of steady production from its Cambay-77H well in India.
Shares in 88 Energy (LON:88E) fell 0.1p, or 20%, to 0.4p on mixed results from its Icewine #1 well in Alaska.
Aminex (LON:AEX) rose 3.45% after provisionally agreeing a six-month extension to the repayment of its corporate loan to July 31, 2016.
The extra time will give the Africa-focused oil & gas company flexibility as it commissions and tests the Kiliwani North gas field.
LONDON OPEN
London shares pared early losses to move higher as investors shrugged off uncertainty caused by Spain's general election and falling oil prices.
The FTSE 100 Index gained 49.08 points to 6101 in early trading while Germany's Dax lifted 159 points and France's Cac-40 rose 34 points.
Markets fell initially after the Spanish poll produced an inconclusive result, with Mariano Rajoy's ruling right-of-centre People's Party gaining most votes but failing to obtain a parliamentary majority.
Brent crude fell to its lowest intra-day level since July 2004 after a report on Friday from oil services company Baker Hughes showed the US oil rig count climbed for the first time in five weeks.
Research analyst at foreign exchange firm FXTM, Lukman Otunuga, said: "This latest increase in oil rig counts, combined with the consistent rise in crude oil inventories, has led to intensifying concerns over the aggressive oversupply in the markets.
"Investor attraction towards this commodity has rapidly faded, and with Iraq’s oil Minister Adel Abdul-Mahdi reiterating that OPEC will stick to its decision of maintaining a policy of uncapped production levels, prices may remain vulnerable and open to further losses."
Despite that, shares in BP (LON:BP.) managed to stay in the black, rising 2.1p to 341.4p. But Royal Dutch Shell's stock backtracked 1.5p to 1467.5p after the Anglo-Dutch major pressed ahead with moves to seek approval for its £55bn tie-up with BG Group (LON:BG.) despite investor unease.
Investors switched on to shares in ITV (LON:ITV) by 10.2p to 274p on a weekend report that Comcast's NBC Universal had held talks with the UK broadcaster about a potential merger.
Elsewhere, shares in Oilex (LON:OEX) spurted 0.02p to 0.6p on news of steady production from its Cambay-77H well in India.
Shares in 88 Energy (LON:88E) fell 0.1p, or 21%, to 0.4p on mixed results from its Icewine #1 well in Alaska.
MARKET PREVIEW
The countdown to Christmas has begun and yet there still seems to be little sign of festive cheer on the markets.
Reacting to a sharp sell-off late on in the US on Friday, the FTSE 100 is set to drop 40 points on open to 6,012.42, according to the spread-betting firms.
Driving sentiment is likely to the oil price once again, with US crude for January delivery off 0.7% at US$34.49 and Goldman Sachs predicting we are headed for an era in which the black stuff trades for US$20 a barrel.
That said, Wall Street was hit by a bout of the jitters over the state of the American economy with some of the big funds selling long positions they held on the S&P 500 index.
“The positive implications for US growth by the Fed raising rates has given way to nerves surrounding slumping oil prices, falling Apple shares and China’s slowdown,” said CMC Markets’ Jasper Lawler.
In Asia the picture was mixed, with most of the regions markets pulling out of the nose-dive precipated by the end of week slump in America.
Japan’s Nikkei 225 was off 0.37%, while China’s two main equity markets, the Shanghai Composite and Hang Seng, were up 1.9% and 0.4% respectively.