Investing.com - European stocks were mostly higher on Tuesday, as oil prices slightly recovered although trading volumes were expected to remain limited ahead of the Christmas Holiday.
During European morning trade, the EURO STOXX 50 slipped 0.15%, France’s CAC 40 rose 0.32%, while Germany’s DAX 30 climbed 0.74%.
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 on Tuesday, crude oil futures for February delivery were up 0.91% at 36.57$ a baril.
Investors remained cautious however after inconclusive elections in Spain over the weekend sparked political concerns.
Spanish Prime Minister Mariano Rajoy said on Monday that his centre-right People's Party (PP) would talk to rivals in a bid to form a government, but the left-wing parties reportedly said they would not want Rajoy to remain in power.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.30% and 0.27%, while Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) climbed 0.51% and 0.93%.
Among peripheral lenders, Italy's Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) rose 0.29% and 0.39% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 0.45% and 0.54%.
Elsewhere, Actelion Ltd. jumped 1.93% after U.S. regulators approved its Uptravi drug for the treatment of a high blood pressure disorder.
Natixis SA added to gains, with shares up 1.65% after saying one capital-ratio measure already exceeds the minimum regulatory requirement.
In London, commodity-heavy FTSE 100 gained 0.75%, led by BG Group (L:BG), whose shares surged 3.08% amid reports Royal Dutch Shell (L:RDSa) is pressing ahead with its £40 billion takeover of the company despite doubts among some shareholders about the deal’s viability given falling oil prices.
Mining stocks were also broadly higher, as Bhp Billiton (L:BLT) advanced 0.85% and Glencore (L:GLEN) rallied 1.20%, while Rio Tinto (L:RIO) jumped 1.25%.
Financial stocks added to gains, with HSBC Holdings (L:HSBA) and Lloyds Banking (L:LLOY) climbing 0.95% and 0.99% respectively, while the Royal Bank of Scotland (L:RBS) advanced 1.12% and Barclays (L:BARC) surged 1.94%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.22% rise, S&P 500 futures signaled a 0.24% increase, while the Nasdaq 100 futures indicated a 0.16% gain.