* FTSEurofirst up 1.5 pct
* Electrolux slumps as GE deal falls through
* Oil stocks down on OPEC inaction
* Property stocks Vonovia, Deutsche Wohnen rally on takeover (Adds quote and detail, updates prices)
By Kit Rees
LONDON, Dec 7 (Reuters) - European shares rose on Monday from the three-week lows hit last week, although Electrolux slumped after its deal to buy General Electric’s appliance business fell through.
GE terminated the $3.3 billion agreement, which the U.S. Department of Justice had asked a federal court to stop in July on concern it would push up prices for consumers. Electrolux shares fell 11.5 percent.
Oil stocks retreated, with Repsol, Royal Dutch Shell, BP and Statoil down between 1.7 and 2.8 percent, after the oil price fell towards a 2015 low following OPEC’s meeting which ended without agreeing to lower production.
“One of the things on my mind at the moment is oil, and the lack of results from OPEC on Friday. Oil prices may be lower for longer, and that’s ... going to be challenging for the energy area of the market,” Adam Laird, head of passive investments at Hargreaves Lansdown, said.
The FTSEurofirst 300 index rose 1.5 percent to 1,479.88 points, reversing last week’s losses after the European Central Bank announced its latest stimulus package, which disappointed investors who had expected more extensive measures.
Among the top gainers, aerospace group Airbus rose 3.5 percent after its orders surpassed 1,000.
Property company Vonovia also rose 3.6 percent after Germany’s cartel office approved its planned 14 billion-euro ($15 billion) hostile bid for smaller peer Deutsche Wohnen, which rallied 4.1 percent.
France’s benchmark CAC-40 index advanced 1.8 percent, shrugging off victories in regional elections on Sunday for the country’s far-right National Front party.
Markets also benefited on Monday from a weaker euro. The currency fell against the dollar after U.S. jobs data on Friday increased the chances U.S. interest rates will rise this month. A weaker euro helps stocks by making European exports cheaper and competing imports more expensive.
JP Morgan Cazenove’s equity strategist Mislav Matejka expected stocks to recover from last week’s ECB disappointment, pointing to signs of economic recovery in Europe and expectations investors would welcome a U.S. rate rise.
However, he added that selling on rallies for a profit might be a good tactic in the future.
“The markets took the latest ECB easing negatively, demonstrating how elevated expectations have become. Still, we think that equities will regain their footing around the turn of the year, given favourable seasonals, stabilizing China, robust euro zone and U.S. activity, and the first Fed hike should be taken positively,” he said.
“Further out, we believe that the structural ‘overweight’ equity stance that we had for all these years is not appropriate any more. The phase of selling any rallies might be upon us.”
Today’s European research round-up (Additional reporting by Sudip Kar-Gupta; Editing by Larry King and Mark Potter)