Market overview: FTSE ends flat as oil prices decline further

1630 (Close): The FTSE 100 ended flat at 6501.42 points amid a drop in the price of oil on Monday, overshadowing increased hopes of further stimulus from the European Central Bank (ECB). "The Eurozone euphoria that is driven by quantitative easing talk is not felt in London as natural resource stocks weigh on the British market," said analyst David Madden from IG. Stocks in the oil and gas sector were under pressure as crude prices continued to fall, such as BG Group, Ophir Energy, Premier Oil and Soco International. In contrast, the lower oil price was helping stocks in the travel sector higher, including Carnival and TUI.

1625: European stocks finished strongly as speculation mounted that the European Central Bank (ECB) will introduce a new bond-buying programme offset falling oil prices. Fuelling the rumours, ECB governing council member Jozef Makuch on Monday told the Slovak news agency the ECB was ready to launch QE if needed. He also said Europe was now in a position to deal with a potential exit of Greece from the Eurozone.

1527: Analysts have said Standard Chartered may need $4.4bn of extra provisions to cover losses from commodities loans. As a result it could be forced to raise billions of dollars from investors.

1430: Saudi prince Alwaleed bin Talal has said that the $100-a-barrel threshold will never be reached again. “If supply stays where it is, and demand remains weak, you better believe [the price of oil] is gonna go down more. But if some supply is taken off the market, and there’s some growth in demand, prices may go up. But I’m sure we’re never going to see $100 anymore,” the billionaire Saudi businessman said in an interview with Maria Bartiromo of Fox Business News.

1312: GKN is topping the FTSE 100 after Credit Suisse issued an 'outperform' rating and lifted its target price from 380p to 410p. The broker said: "Despite automotive accounting for around 59% of 2015 estimated group revenue, investor attention is often focused on the (smaller) aerospace division. However, we are of the view that automotive and in particular Powertrain /Drivetrain applications (around 53% of group revenue) offer potential to deliver upside surprise to group earnings consensus estimates, particularly in 2016".

1230: European stocks are higher amid bets the bloc's central bank may introduce a new bond-buying programme. “The ECB rumour mill is boosting global risk-assets and pressuring the euro over possible plans for QE in the Eurozone,” said Jasper Lawler, analyst at CMC Markets.

1115: Energy stocks, including offshore deepwater drilling company Seadrill and Anglo-Dutch giant Royal Dutch Shell, are lower amid a drop in oil prices after after Goldman Sachs cut its estimates for global benchmark crude prices.

0930: UK employment confidence declined in December, according to data from Lloyds. The index dropp to -2 from 1 the previous month.

0853: Travel groups led the FTSE 100 higher initially on Monday. Carnival, the world's largest cruise was the biggest riser after announcing that fuel prices fell 15.5% in the fourth quarter, while International Consolidated Airlines Group advanced in the wake of an improved offer for Irish airline Aer Lingus, which prompted broker Liberum to reaffirm its 'buy' stance on the stock. Meanwhile, InBev, the world's largest beer maker has been boosted by news that German bank Berenberg expects higher disposable incomes to lift spending on alcohol by 2%. At 08:53 the FTSE 100 was up 15.3 points at 6,516.50.