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European stocks open higher, recover from oil drop; Dax rallies 1.06%

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Shutterstock photo - - European stocks opened higher on Monday, as they recovered from Friday's drop in oil prices to an 11-trough.

Trading volumes were expected to remain limited ahead of the Christmas Holiday.

During European morning trade, the EURO STOXX 50 rose 0.27%, France's CAC 40 gained 0.37%, while Germany's DAX 30 rallied 1.06%.

Markets were hit after crude oil prices fell to 34.29$ on Friday, the lowest level since 2004, amid renewed worries over a global supply glut.

In early European morning hours, crude oil futures for February delivery were down 1.15% at 35.66$ a baril.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) eased 0.02% and 0.11%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) declined 0.11% and 0.36%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) fell 0.28%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) plummeted 2.71% and 2.95%.

Elsewhere, TeliaSonera AB (ST:TLSN) jumped 1.15% after the Swedish phone company sold its stake in Nepalese phone carrier Ncell to Axiata Group Bhd. for more than $1 billion,

The move was the company's first major step in a plan to exit Asian and former Soviet markets to focus on Europe and its home Nordic region.

In London, commodity-heavy FTSE 100 gained 0.40%, boosted by strong gains in the mining sector.

Shares in Bhp Billiton (L:BLT) climbed 0.74% and Rio Tinto (L:RIO) advanced 0.94%m while Anglo American (L:AAL) and Glencore (L:GLEN) surged 1.99% and 2.83% respectively.

BG Group PLC (L:BG) added to gains, with shares up 1.05% after its largest investor Capital Group sold about £100 million shares in the oil and gas company.

The move came following reports the UK company could be acquired by its Anglo-Dutch rival, Royal Dutch Shell (L:RDSa). The European Union antitrust regulators recently approved Royal Dutch Shell's plans to buy BG Group (L:BG), which will lead to the creation of one of the richest and biggest oil companies.

Financial stocks were also mostly higher, as HSBC Holdings (L:HSBA) rose 0.34% and Barclays (L:BARC) gained 0.51%, while the Royal Bank of Scotland (L:RBS) climbed 0.58% and Lloyds Banking (L:LLOY) rallied 1.08%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.68% gain, S&P 500 futures signaled a 0.80% climb, while the Nasdaq 100 futures indicated a 0.79% increase. offers an extensive set of professional tools for the financial markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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