European shares advance even as Spanish stocks take election hit
* Spain's inconclusive election weighs on Madrid market
* Ericsson soars after settling dispute with Apple
* ITV gains on bid speculation
By Kit Rees
LONDON Dec 21 (Reuters) - European shares gained ground on Monday, buoyed by carmaker Volkswagen and telecoms equipment manufacturer Ericsson, although an inconclusive Spanish election result hit the Madrid market.
Neither Prime Minister Mariano Rajoy's conservatives nor left-wing parties won a clear mandate to govern in Sunday's poll, casting further uncertainty over the outlook for Spain's reform programme and broader economy. Talks to form a coalition government are expected to take weeks.
Spain's top-share IBEX 35 index fell 2.1 percent, while Spanish 10-year government bond yields hit one-month highs after the election.
Spanish companies Banco Santander, Banco Bilbao Vizcaya Argentaria, Iberdrola and Telefonica were the top fallers on the European blue-chip STOXX50 index, all down between 1 percent and 2.8 percent. Continuación...