LONDON: European stock markets ended the day slightly higher Monday, after an early rally ran out of steam as the prospect of drawn-out coalition talks in Germany weighed on sentiment.
On the other side of the Atlantic, share prices on Wall Street were also mixed, as investors await the release of a slew of different economic data later this week.
Brent oil prices jumped close to a three-year high just short of $80 a barrel on concerns about tightening supplies, boosting shares in energy companies.
After earlier surging by as much as 0.5 percent, the blue-chip DAX index in Frankfurt ended the day 0.3 percent higher.
Europe's biggest economy could be headed for weeks, if not months, of political uncertainty, with protracted coalition haggling looming as Chancellor Angela Merkel's conservatives insisted on trying to form a government even after losing to the Social Democrats in a tight race.
The London and Paris stock markets also pared early gains to end the session 0.2 percent higher.
The European single currency briefly ducked under $1.17.
It's been an interesting start to the week as equity markets made strong gains early in the day before giving most back as the morning wore on," said OANDA analyst Craig Erlam.
"Despite the relative comfort surrounding a probable coalition of moderate parties, the current uncertainty and the protracted nature of forming a new government has contributed to the euro taking minor losses against other major currencies," said MoneyCorp analysts in a note to investors.
Investors also kept a nervous eye on developments in the crisis at troubled Chinese property giant Evergrande as it teeters on the brink and threatens contagion.
"There seems to be a strange complacency in the markets, with investors choosing to ignore the mounting risks that are appearing -- whether that be Evergrande, slower growth, higher inflation, hawkish central banks, energy crises, to name some," OANDA's Erlam told AFP.
He said for the moment a fear of missing out meant investors were buying on any dips.
"We're seeing markets paring early gains as the session proceeds but if this mentality persists, I fear investors may be setting themselves up for a nasty shock," the analyst warned.
London stocks were dampened by an ongoing shortage of petrol or gasoline that has been sparked by panic-buying at fuel stops across Britain.
In commodity markets, Brent North Sea oil spiked in Asian trade to $79.52 per barrel on supply woes.
"The world's demand is not being met with enough supplies and this has pushed Brent towards $80," said Exinity analyst Hussein Sayed.
Brent oil nears $80 a barrel on tight supply
"Inventories across all continents are dropping as we head into the (northern hemisphere) winter season."
Asian equity markets mostly rose, though investors eyed ongoing Evergrande worries.
Hong Kong was among the best performers on bargain-buying after suffering a blow-out last week, though traders were still none the wiser about whether Evergrande paid interest on an offshore bond that was due last Thursday.
Bitcoin held around $44,000, having largely recovered over the weekend from a plunge below $40,000 that came in reaction to news that China deemed all financial transactions involving cryptocurrencies illegal.
Key figures around 1545 GMT
Frankfurt - DAX: UP 0.3 percent at 15,573.88 points (close)
London - FTSE 100: UP 0.2 percent at 7,063.40 (close)
Paris - CAC 40: UP 0.2 percent at 6,650.91 (close)
EURO STOXX 50: UP 0.2 percent at 4,165.48
New York - Dow: UP 0.3 percent at 34,916.91
Tokyo - Nikkei 225: FLAT at 30,240.06 (close)
Hong Kong - Hang Seng Index: UP 0.1 percent at 24,208.78 (close)
Shanghai - Composite: DOWN 0.8 percent at 3,582.83 (close)
Euro/dollar: DOWN at $1.1707 from $1.1720 at 2100 GMT on Friday
Pound/dollar: UP at $1.3723 from $1.3679
Euro/pound: DOWN at 85.28 pence from 85.68 pence
Dollar/yen: UP at 110.80 yen from 110.73 yen
Brent North Sea crude: UP 1.6 percent at $79.37 per barrel
West Texas Intermediate: UP 1.8 percent at $75.31 per barrel
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