US stocks gain as oil steadies; European markets fall

New York: European stocks suffered another round of losses Monday, while US equities finished higher following a late-session rally in oil prices.

The commodities rout again hung over global equities, with another fall in oil prices in early trade prompting more selling in European bourses.

London`s FTSE 100 ended down 1.3 percent, while Paris`s CAC 40 dropped 1.7 percent and Frankfurt`s DAX 30 1.9 percent.

But crude prices moved into the positive zone in late trade, pulling up oil majors like ExxonMobil and Chevron and spurring the S&P 500 for a 0.5 percent gain at the close. 

"It looks like the US equities market was taking its cues from oil today," said Jack Ablin, chief investment officer at BMO Private Bank. "We had oil dip below $35 a barrel and then ending up the day higher."

US benchmark West Texas Intermediate for delivery in January rose 69 cents to finish at $36.31 a barrel on the New York Mercantile Exchange, ending a six-day skid.

Ted Sloup of iiTrader.com called the market moves Monday "a healthy correction" in a technically oversold crude market.

But, he said, "overall the market is still very bearish" as investors continued to worry about global oversupplies.

Tokyo shed 1.8 percent as the strong yen weighed on export-oriented stocks.

However, Shanghai surged 2.5 percent as traders welcomed strong Chinese industrial production data over the weekend in a sign that government stimulus measures may be driving a mild recovery in the world`s second largest economy.The foreign exchange market avoided major swings two days ahead of a US Federal Reserve meeting that could result in the first US rate hike in almost a decade.

Joe Manimbo, senior market analyst at Western Union Business Solutions, said the dollar`s "restless" movements was not surprising "ahead of the year`s main event: An expected US rate hike on Wednesday."

Commodities stocks remained vulnerable in Britain, with Glencore slumping 6.3 percent, BHP Billiton losing 3.6 percent and BP 2.6 percent.

But US oil producers finished higher, with Dow members ExxonMobil and Chevron both advancing, along with several smaller oil companies.

Apple fell 0.6 percent after Morgan Stanley lowered its price target on the technology giant based on a forecast of falling 2016 iPhone sales.

Yahoo fell 1.0 percent as investment fund SpringOwl called for the company to slash more than 80 percent of its workforce and replace chief executive Marissa Mayer. SpringOwl did not disclose the size of its investment in the tech company.

Dow Chemical and DuPont again fell sharply following Friday`s announcement of their mega-merger, with Dow losing 3.9 percent and DuPont 3.6 percent. Activist investor Daniel Loeb called for the ouster of Dow chief executive Andrew Liveris, who is set to become executive chairman of the combined company.New York - Dow: UP 0.6 percent at 17,368.50 (close)

New York - S&P 500: UP 0.5 percent at 2,021.94 (close)

New York - Nasdaq: UP 0.4 percent at 4,952.23 (close)

London - FTSE 100: DOWN 1.3 percent at 5,874.06 points (close)

Frankfurt - DAX 30: DOWN 1.9 percent at 10,139.34 (close)

Paris - CAC 40: DOWN 1.7 percent at 4,473.07 (close)

EURO STOXX 50: DOWN 2.0 percent at 3,139.24 (close)

Tokyo - Nikkei 225: DOWN 1.8 percent at 18,883.42 (close)

Euro/dollar: DOWN to $1.0992 from $1.0996 late in New York on Friday.

Dollar/yen: UP to 120.98 yen from 120.86 yen