Neste Oil outperforms as European shares climb higher

LONDON, Dec 22 (Reuters) - European stock markets rose on Monday, tracking gains in Asian and U.S. equity markets, while Finland's Neste Oil (Other OTC: NTOIY - news) outperformed after raising its guidance.

Britain's blue-chip FTSE 100 index advanced by 0.7 percent, Germany's DAX progressed by 0.8 percent, France's CAC rose 0.8 percent while the pan-European FTSEurofirst 300 index also climbed 0.6 percent higher.

Neste Oil was among the best-performing stocks in the region, rising by 3.5 percent after the company lifted its full-year profit guidance by about 37.5 percent.

Energy stocks also fared well, with the STOXX Europe 600 Oil & Gas Index rising 2.1 percent as Brent crude oil futures rose more than 2 percent toward $63 a barrel.

Securequity sales trader Jawaid Afsar expected European stock markets to continue to rise going into the end of 2014.

"Markets are expected to drift higher as volumes thin out and we head into year-end. Stronger U.S. and Asian markets are also helping as oils and miners lead the rally," he said.

(Reporting by Sudip Kar-Gupta; Editing by Alistair Smout)