Share markets in London and other European financial centres posted robust gains yesterday, boosted by a strong advance in oil shares.

Share markets in London and other European financial centres posted robust gains yesterday, boosted by a strong advance in oil shares.

Wall Street stocks oscillated between negative and positive ground as investors digested news of disappointing housing data.

A report on US consumer confidence from Reuters and the University of Michigan showed the steepest monthly drop on record in October also weighed on the market. Consumer spending accounts for two-thirds of economic activity.

However, billionaire investor Warren Buffett said he has turned bullish on equities and is moving some of his investments out of US Treasuries and into stocks despite the current chaos in the financial markets.

"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful," Buffett wrote in an opinion column in the New York Times.

Buffett acknowledged the economic news was bad, with the financial world in a mess, unemployment rising and business activity faltering.

"What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up," he said. "So if you wait for the robins, spring will be over."

The Dow Jones industrial average closed 127.04 points lower at 8852.22.

Energy shares led the advance in Europe, with Royal Dutch Shell, BP and Total all gaining more than 8% as oil prices rose by around $2 to trade above $71 a barrel.

Crude drew support from Opec's decision to bring its meeting forward to next week, which has raised expectations for a supply cut, and the broad rally in share markets.

European pharamceuticals were also higher but heavily- sold miners were the victim of falling metals prices and forced selling by hedge funds, with early gains wiped out.

In London, the FTSE-100 index closed 201.62 points up at 4063.01, ending 3.3% higher on the week. The index shed more than 20% during the previous week, its worst weekly performance since the 1987 stock market crash.