EUROPE MARKETS: European Oil Shares Pull Back, But Benchmark Logs Gain

By Carla Mozee, MarketWatch

Alstom pays record bribery-related penalty in the U.S.

LONDON (MarketWatch) -- European stocks rose Monday, staking out gains during the holiday-shortened week, though the energy group lost steam as oil prices swung lower.

The Stoxx Europe 600 rose 0.5% to end at 341.97, adding to last week's rise of 2.95%, the benchmark's strongest weekly rise in a year, according to FactSet data. Read: Why Europe is where to invest next year.

Tech, consumer services and financial stocks paced Monday's advance, with shares of Dutch semiconductor firm ASM International NV up 3.7%, and French telecom firm Iliad SA 3% higher. Home Retail Group PLC climbed 5.3%.

Shares of Afren PLC rose 3.8%, but came off the double-digit surge that put them at the top of the Stoxx 600 earlier in the session. The oil exploration and production company said Monday it received a "highly preliminary approach" from Nigeria-based oil firm Seplat Petroleum Development Co. about a possible deal. Seplat has by 5 p.m. on Jan. 19 to say whether it intends to make a firm offer, Afren said in a statement.

Afren shares are facing a 70% loss for the year, having been hit since mid-year alongside other oil companies, as prices for Brent crude and U.S. crude oil have roughly halved on concerns about oversupply.

Oil prices had found some relief earlier in the day, but selling pressure later picked up pace. In the latest indication that Saudi Arabia isn't likely to cut production levels, Saudi Energy Minister Ali al-Naimi over the weekend said it will maintain its production and may even increase it if a new client emerges. West Texas Intermediate (CLG5) futures swung 2% lower, below $56 a barrel. Brent futures slipped below $60 a barrel.

Shares of Norwegian oil-services company Seadrill Ltd. slumped 6.4%, French oil major Total SA shed 0.1%, and oil services firm Petrofac Ltd. lost 2.5%.

Elsewhere on the Stoxx 600, shares of Alstom SA fell 0.6% after the French power and transportation firm agreed to pay a $772 million criminal penalty stemming from accusations the company paid bribes to foreign officials. Alstom is set to sell the bulk of its power business to the U.S.'s General Electric Co. (GE). The penalty was the largest criminal fine levied by the U.S. against a company for breaking foreign bribery laws, the DOJ said.

Shares of Banca Monte dei Paschi fell 6.9%, marking a fourth straight decline on the troubled Italian lender's plan to sell shares to raise 2.5 billion euros ($3.06 billion) to address a shortfall in capital.

Meanwhile, Greek stocks rose after Prime Minister Antonis Samaras on Sunday offered compromises to resolve an impasse over choosing Greece's future head of state and so avoid snap elections early next year. The Athex Composite rose 0.6% to 862.84.

In Frankfurt, the German DAX 30 rose 0.8% to 9,865.76, France's CAC 40 tacked on 0.3% to 4,253.61, and the U.K.'s FTSE 100 rose 0.5% to 6,576.74.

Trading volumes are expected to be lighter than usual this week ahead of the Christmas Day holiday on Thursday.

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