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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