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Stock markets around the world showed mixed results on Monday before a rebound in oil prices amid a bloody attack by extremists in Israel to Gaza.

The Stock Exchange of New York closed with moderate losses in an erratic session after the violence in the Middle East reminded investors other problems apart from the recession. The Dow Jones industrial average fell 31.62 points (0.37%) to 8483.93.

The broader indexes also declined to. The Standard & Poor's fell 3.38 points (0.39%) to 869.42 while the Nasdaq composite index fell 19.92 whole (1.30%) to 1510.32.

The Latin American stock markets moved up slightly after the general increase in oil prices and other raw materials produced in the region.

The benchmark Bovespa in Sao Paulo Stock Exchange advanced 0.5% to 37,060 points, while the price index and quote of the Mexican market fell 0.6% to 22,392.

For its part, Buenos Aires Merval index rose 1.7% to the whole 1076, the Chilean IPSA rose 1% to 2373 and the Colombian IGBC fell 0.5% to 7523 points.

In Europe, Britain's FTSE 100 closed with a rise of 2.44%, the German DAX index rose 1.63% and the French CAC-40 advanced 0.47%.

The shares of raw materials and Japanese financial companies gained ground.

In Tokyo the Nikkei 225 index advanced 7.65 points (0.1%) to 8747.17 and units in Hong Kong the Hang Seng Index index gained 1.0% to 14,328.48.

While many investors were out for the celebrations of the end of the year and its books of the year have already been closed, the volume of trade declined.

Investors remained cautious in a week shortened by the New Year holidays, reluctant to risk much in the last three days of transactions in 2008. The increasing attacks by Israel on the Islamic extremist group Hamas in Gaza that have left over 300 dead affected the morale of the market.

The tensions prompted the crude above $ 40.02 a barrel during the session, with an increase of $ 2.31 on the New York Mercantile Exchange.

Moreover, the recent wave of government stimulus helped bolster spirits despite concerns about the first half of next year will have the worst returns for companies and a weak global economy.

"There is expectation and hope about what governments may give support to the economy and thus lead to a better second half in 2009," said Song Seng Wun, an economist at CIMB-GK consultancy in Singapore.

The main indicators in Singapore, Australia and India advanced more than 1%, while in Shanghai and South Korea closed unchanged. The bags in Indonesia, Malaysia and the Philippines were closed.

Japanese financial companies progressed despite the country's second insurer, Mitsui Sumitomo Insurance Group Holdings Inc, discusses a possible merger with two of its smaller rival, to create the largest insurer in the country. Mitsui advanced 8.3%.