European stocks win oil boost, Madrid underperforms on Catalan woes

Most European stock markets rose Monday on advancing oil prices, but Madrid sank on resurgent worries over the Catalan independence crisis, dealers said.

Frankfurt, London and Paris were each higher in afternoon trading.

"Gains seen in Asian markets... helped push risk appetite higher," said analyst Joshua Mahony at online trading firm IG.

"Conflict in the Middle East has seen oil prices spike higher."

Iraqi forces made rapid progress on Monday in their operation against Kurdish fighters in the disputed Kirkuk province, seizing a key military base, an airport and an oil field, commanders said.

An Iraqi oil ministry official said pumping had stopped at Kirkuk's two main oil fields on Monday as Iraqi forces advanced.

Iraqi troops and allied forces launched the operation overnight after tensions between Baghdad and the Kurds spiralled into an armed standoff following last month's referendum on Kurdish independence.

The news spurred oil prices higher because it stoked geopolitical tensions in the crude-rich Middle East. The rising value of oil boosts the share prices, revenues and profits of energy companies.

BP stock won 0.5 percent and Royal Dutch Shell's 'A' share price gained 0.6 percent in London, while French oil giant Total added 0.7 percent in Paris.

In other commodities news, palladium prices soared Monday to the highest level in 16 years, boosted by increased demand for its use in catalytic converters in petrol engines as consumers shift away from diesel vehicles.

At about 1030 GMT, the price of palladium hit $1,005.20 per ounce, the highest level since February 2001.

- Catalonia uncertainty -

In Madrid, the stock market shed 0.5 percent after the Spanish government said Catalonia's separatist leader had failed to clarify whether he had declared independence.

"Spanish shares are once again underperforming their European counterparts after Catalan leader Carles Puigdemont opted not to clarify whether or not independence had been declared," added Oanda analyst Craig Erlam.

"Instead, Puigdemont once again called for dialogue with Madrid over the next two months."

Madrid has given Puigdemont until Thursday at 0800 GMT to make clear his intentions.

In London, medical technology firm Convatec topped the fallers' board -- its share price slumping more than a fifth after the company slashed its revenue growth forecast on chronic supply problems.

EasyJet shares retreated after the British low-cost airline confirmed it was in talks with Air Berlin's administrators for 25 of the collapsed carrier's remaining aircraft.

Lufthansa had agreed a deal last Thursday to take 81 of Air Berlin's 144 aircraft and 3,000 of its 8,500 staff.

EasyJet stock descended 1.2 percent in London, while Lufthansa rose nearly 0.6 percent in Frankfurt.

Asian markets extended gains on Monday after a positive lead from Wall Street before the weekend, while the dollar struggled following more weak US inflation figures.

Wall Street stocks pushed higher at the open of trading, with the Dow adding nearly 0.2 percent.

"US stocks are higher in early action, with a jump in domestic regional manufacturing activity joining some upbeat economic data in China to support global economic sentiment, ahead of a host of earnings and economic reports this week," said analysts at Charles Schwab brokerage.

Equities around the world have been rallying on optimism about the global economy and the current corporate earnings season.

- Key figures around 1330 GMT -

London - FTSE 100: UP 0.07 percent at 7,540.47 points

Frankfurt - DAX 30: UP 0.2 percent at 13,021.77

Paris - CAC 40: UP 0.3 percent at 5,335.92

Madrid - IBEX 35: DOWN 0.5 percent at 10,206.70

EURO STOXX 50: UP 0.2 at 3,610.29

New York - DOW: UP 0.2 percent at 22,909.63

Tokyo - Nikkei 225: UP 0.5 percent at 21,255.56 (close)

Hong Kong - Hang Seng: UP 0.8 percent at 28,692.80 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,378.47 (close)

Euro/dollar: DOWN at $1.1804 from $1.1822 at 2100 GMT on Friday

Pound/dollar: DOWN at $1.3270 from $1.3291

Dollar/yen: DOWN at FLAT at 111.86 yen

Oil - Brent North Sea: UP 93 cents at $58.10 per barrel

Oil - West Texas Intermediate: UP 74 cents at $52.19

burs-rl/boc