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Rising energy shares drove European equities higher on Monday, while Greece’s bourse also advanced after the country’s Prime Minister had offered on Sunday to bring pro-European independents into the government.
However, French semiconductor engineering group Soitec lost more than half of its stock market value after it cut its earnings guidance.
Britain’s blue-chip FTSE 100 index advanced by 0.9 per cent, Germany’s DAX progressed by 0.6 per cent, France’s CAC rose 1 per cent, while the pan-European FTSEurofirst 300 index also climbed 0.7 per cent.
Athens’ ATG equity index, which has fallen by more than 20 per cent in 2014 on concerns about a disorderly exit by Greece from its international bailout, rose 1.9 per cent — recovering from a 1.4 per cent fall on Friday.
Greek Prime Minister Antonis Samaras had offered on Sunday to bring pro-European independents into the government and hold new elections in late 2015 if lawmakers back him to elect a new president.
Although largely a ceremonial post, if the 300-member parliament does not choose a president by December 29, elections will have to be held by early February, potentially putting bailout negotiations at risk.
Nevertheless, some traders expected Greece to avoid new elections.
“Greece should be able to resolve its issues,’’ said Securequity sales trader Jawaid Afsar.
Energy stocks also fared well.
The STOXX Europe 600 Oil & Gas Index rose 2.1 per cent as Brent crude oil futures advanced by more than 2 per cent towards $63 a barrel, continuing a recovery from a slump in the price over the last month.
Neste Oil rose 2.9 per cent after raising its full-year profit guidance by about 37.5 per cent.
Norwegian energy group Seadrill also rose 6.3 per cent, while Royal Dutch Shell and BP advanced by 2.5 per cent and 1.9 per cent, respectively.
“There are clearly some bargains around in the energy sector after the recent relentless sell-off, so I would focus on that sector if I wanted to invest some cash into year-end,’’ said Hampstead Capital LLP hedge fund manager Lex van Dam.
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