Spanish stock market slumps after vote

Spain's stock market slumped on Monday following an election that has left the eurozone nation struggling to form a government.

Rival European indices produced solid gains 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.

"This morning has seen markets rebound somewhat after a tough week with European stocks feeling the festive cheer," said James Hughes, chief market analyst at GKFX trading group.

But in afternoon trading Madrid's IBEX 35 stocks index was down 2.4 percent compared with Friday's close, trading at 9,482.7 points. The index had opened with losses of around 2.5 percent.

"Spain's IBEX stock index dived to its worst day in three months whilst Spanish bond yields spiked as investors reacted to the country's uncertain political future," said Jasper Lawler, market analyst at CMC Markets.

Spain faces a struggle to form a stable government following weekend elections that saw the incumbent conservatives score a win but not gain a 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 on Monday, London's benchmark FTSE 100 index was up 0.9 percent.

In the eurozone, Frankfurt's DAX 30 climbed 1.0 percent and in Paris the CAC 40 gained 0.4 percent.

The euro rose to $1.0886 in foreign exchange.

- Oil strikes lows -

Oil prices extended losses Monday with Brent North Sea crude hitting an 11-year low.

Despite last week's interest rate hike from the US Federal Reserve, analysts pointed to lingering concerns about the global economy.

Ahead of the Christmas shut-down, markets will track key economic figures due this week, including US growth and home sales data and Japanese inflation.

Crude prices continued to slide as an ongoing supply glut showed no sign of easing. Figures Friday showed a rise in the number of US rigs drilling, increasing worries that output will continue apace.

Brent on Monday sank to $36.05 a barrel -- its weakest since May 2004 -- and US standard West Texas Intermediate dropped to $34.50, close to early 2009 lows that came amid the height of the global financial crisis.

Prices have slumped by almost one fifth since December 4 when the OPEC oil producers' group decided against limiting production, despite tepid demand and the supply glut.

Oil has sunk more than 60 percent from above $100 in mid-2014.

- Toshiba shares tank -

Most Asian markets rose on Monday, although Tokyo gave up 0.4 percent after Toshiba's stocks took a battering of nearly 10 percent following a weekend report in the leading Nikkei business daily that it would likely record a fiscal year net loss of about $4 billion.

In a statement after the markets closed Monday, Toshiba said it would post a record 550 billion yen ($4.5 billion) annual loss.

The 140-year-old company was this year hit by revelations that executives systematically pressured underlings to inflate profits in a years-long scheme to hide poor results.

Wall Street stock indices opened on the upside as investors went bargain hunting following two losing sessions, with the Dow rising 0.8 percent.

Shares in Disney rose 1.3 percent after reporting that "Star Wars: The Force Awakens" generated an estimated $238 million in US and Canadian box office sales, shattering the previous opening-weekend record by about $30 million.

- Key figures around 1430 GMT -

London - FTSE 100: UP 0.9 percent at 6,108.29 points

Frankfurt - DAX 30: UP 1.0 percent at 10,708.69

Paris - CAC 40: UP 0.4 percent at 4,641.41

EURO STOXX 50: UP 0.4 percent at 3,273.18

New York - Dow: UP 0.8 percent at 17,261.54

New York - S&P 500: UP 0.8 percent at 2,021.34

New York - Nasdaq: UP 0.8 percent at 4,963.62

Tokyo - Nikkei 225: DOWN 0.4 percent at 18,916.02 (close)

New York - Dow: DOWN 2.1 percent at 17,128.55 (close)

Euro/dollar: UP to $1.0886 from $1.0870 late Friday

Dollar/yen: UP to 121.27 yen from 121.26 yen