Europe: Stocks steady at open; Spain lags

[LONDON] Spain's stock market slumped at the start of trading on Monday following an election that has left the eurozone nation struggling to form a government.

Rival European indices opened steadily as investors brushed aside a slump in oil prices to 11-year lows - at the start of a shortened trading week owing to the upcoming festive break.

At the open on Monday, Madrid's IBEX 35 slumped 2.5 per cent compared with Friday's close to trade at 9,478.8 points.

Spain faced a struggle to form a stable government following historic weekend elections that saw the incumbent conservatives score a win but no majority, tailed by the long-established Socialists and upstart, far-left Podemos.

The polls cap a year of electoral change in southern Europe after Syriza swept to power in Greece in January and a coalition of leftist parties in Portugal pooled their votes in parliament to unseat the conservative government after an inconclusive election in October.

Elsewhere at the start of trading on Monday, London's benchmark FTSE 100 index was flat at 6,054.7 points compared with Friday's close.

In the eurozone, Frankfurt's DAX 30 was unchanged at 10,607.2 points and in Paris, the CAC 40 lost 0.2 per cent to 4,617.6.

AFP