European equities finished Monday in mixed trading despite a sharp drop in oil prices weighing on investor sentiment.
The pan-European Stoxx 600 index (^STOXX) pared sharp gains to close up 0.5 percent provisionally, with most sectors ending in positive territory, yet, the oil and gas sector tanked 2.8 percent.
France's CAC (Euronext Paris: .FCHI) and Germany's DAX (^GDAXI) finished trade up 0.9 and 1.2 percent respectively, however, the London FTSE (FTSE International: .FTSE) closed down 0.2 percent.
Oil prices were in focus for European markets on Monday as investors digested the latest news coming from last week's meeting of the Organization of Petroleum-Exporting Countries (OPEC) in Vienna on Friday. There, the 12-member oil producing group, whose de facto leader is Saudi Arabia, decided to keep its policy unchanged in order to view future market fluctuations, despite a global supply glut. Consequently, U.S. markets traded lower on Monday.
Brent crude fell to more than 6½-year low during trade, down over 4 percent at $41.14 by Europe's close, while its U.S. counterpart, WTI crude, slipped further below $40, down around 5 percent briefly, last standing at $38 a barrel. The U.S. dollar was up against a basket of currencies, including the ruble (Exchange:RUB=), as oil weighed on the Russian currency.
Individual oil stocks nosedived over supply glut concerns, with Tullow Oil (London Stock Exchange: TLW-GB) and Seadrill (Oslo Stock Exchange: SDRL-NO) both closing down over 8 percent, while Petrofac (London Stock Exchange: PFC-GB), Royal Dutch Shell (London Stock Exchange: RDSA-GB) and Subsea 7 (Oslo Stock Exchange: SUBC-NO) all ended sharply lower.
Basic Resources also came under pressure, off over 1 percent, with miners weighing on the FTSE (FTSE International: .FTSE). Antofagasta (London Stock Exchange: ANTO-GB) and BHP Billiton (London Stock Exchange: BLT-GB) were both off 2.8 percent, while Luxembourg-based steel firm, Arcelormittal (Euronext Amsterdam: MT-NL) tumbled 3.7 percent.
Shares of Electrolux (Stockholmsborsen:ELUX.B-SE) plummeted 13.4 percent—making it the worst performer on the index—after it said its deal to buy General Electric (GE)'s appliance business had fallen through after GE terminated the $3.3 billion agreement.
Germany's cartel office approved property company Vonovia's planned 14 billion-euro ($15 billion) hostile bid for smaller firm, Deutsche Wohnen (XETRA:DWNI-DE), the watchdog announced Monday, according to Reuters. Vonovia (XETRA:VNA-DE) shares finished up 3.4 percent, while Deutsche Wohnen jumped 3.7 percent.