The London market fell on Monday as crude prices slumped to 11-year lows, weighing on heavyweight oil stocks.
The FTSE 100 Index slipped 17.6 points to 6034.8 after Brent crude fell as low as 36.05 US dollars a barrel, its lowest level since July 2004.
Germany's DAX was down 0.4 per cent, while the Cac 40 in France was 0.2 per cent lower. In New York the Dow Jones Industrial Average was 50 points higher in early trading.
The pound was a cent lower against the the euro at 1.36, after European Central Bank chief economist Peter Praet said it would continue with money boosting measures for "as long as is necessary". Sterling was marginally lower against the US dollar, at just under 1.49.
In stocks, oil giant Royal Dutch Shell slipped 16.5p to 1450.5p, while rival BP fell 4p to 335.2p, as Brent crude recovered slightly to $36.14 a barrel, though still far away from the $115 the commodity commanded in June 2014.
Gas explorer BG Group was up 8.2p to 899.8p after it announced further progress on its £47 billion takeover by Shell.
Shell and BG said their shareholder meetings to approve the recommended tie-up are expected to be convened on January 27 and 28 respectively.
The biggest riser in the top flight was Downton Abbey broadcaster ITV, which soared almost four per cent on the back of takeover talk.
The network lifted amid reports that executives from US media giant Comcast have held discussions with ITV management about a tabling a bid for the UK firm, said the Mail on Sunday, without citing sources.
Shares in the commercial broadcaster, a perennial bid target, climbed 7.7p at 271.5p, amid light volume trading in the run-up to Christmas.
Rolls-Royce was another faller after a newspaper interview with the engine-maker's chief executive, Warren East, in which he raised concerns about the performance of the group's diesel engine business.
In the interview Mr East voiced "disquiet" about trading conditions in the diesel engine unit, the only part of the broader aerospace group to have avoided a downgrade in the past five profit warnings.
Shares fell 7p to 569.5p.
A number of retailers are also lower over concerns that firms have already begun discounting in the run-up to Christmas, boosting revenues but impacting profits.
Sports Direct International was down 6.5p to 563.5p, Primark owner Associated British Foods fell 91p to 3236p, while Next was 55p lower at 7220p.
The biggest risers in the FTSE 100 Index were ITV, Glencore up 2.2p at 83.1p, InterContinental Hotels Group up 68p to 2591p, and Antofagasta up 8.9p to 425.2p.
The biggest fallers were Coca-Cola HBC down 47p at 1453p, Associated British Foods down 91p at 3236p, Smith & Nephew down 29p at 1143p, and Ashtead group down 15p at 1095p.
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