Europe open: Stocks in the red as oil prices resume slide

European stocks slipped in early trade, giving back some of the previous session’s gains as oil prices resumed their slide, on what will be the last full day of trading in 2015.

At 0900 GMT, the benchmark Stoxx Europe 600 index and France’s CAC 40 were both 0.5% lower, while Germany’s DAX was off 0.7%

Meanwhile, the recovery in oil prices proved fleeting as they were under pressure again on Wednesday.

West Texas Intermediate was down 1.8% at $37.19 and Brent crude was 1.2% lower at $37.33, as worries about slowing demand and high supply weighed.

Late on Tuesday, a report from the American Petroleum Institute showed an increase of nearly 3m barrels in crude supplies in the week ended 25 December.

In addition, forecasts that a cold snap in Europe could be short-lived also dented oil prices, pushing the Stoxx 600 oil and gas index down 1%.

Metals prices were also weaker and the Stoxx 600 basic resources index fell 1.3%.

Comments from the International Monetary Fund’s managing director Christine Lagarde did little to help the mood.

In a guest article for German daily Handelsblatt, she said global economic growth will be "disappointing" next year.

"In many countries the financial sector still has weaknesses and in emerging markets the financial risks are increasing. All of that means global growth will be disappointing and uneven in 2016," she said, pointing to low productivity, ageing populations and the effects of the global financial crisis.

In corporate news, shares in aerospace and defence group Rolls-Royce nudged a touch lower following a report that MPs are set to meet boss Warren East to discuss his restructuring plans amid concerns for UK jobs.

Elsewhere, Swiss bank Julius Baer rallied despite saying it has set aside nearly $200m in additional provisions to settle a US criminal investigation that it helped wealthy American clients evade taxes.

On the macroeconomic front, US MBA mortgage applications are scheduled for release at 1200 GMT, while pending home sales are due at 1500 GMT.