By Natascha Divac

No major data or corporate news expected

European stocks finished slightly higher Tuesday, as volumes remained thin with little news to give markets any clear direction on the first trading day after the long holiday weekend.

The Stoxx Europe 600 rose 0.1% to finish at 360.48, with London markets still closed.

The Stoxx Europe Banks Index fell 0.3% amid ongoing concerns about the future of Italy's ailing lender, Banca Monte dei Paschi di Siena SpA (BMPS.MI) . The bank was still suspended from trade Tuesday.

Plans for a government bailout will need to be approved by the European Union to ensure state-aid rules aren't breached, European Central Bank Governing Council memberJens Weidmann said Monday (http://www.marketwatch.com/story/bundesbank-urges-monte-dei-paschi-scrutiny-2016-12-27).

(http://www.marketwatch.com/story/bundesbank-urges-monte-dei-paschi-scrutiny-2016-12-27)Matthew Lynn:4 possible surprises for European markets in 2017 (http://www.marketwatch.com/story/4-possible-surprises-for-european-markets-in-2017-2016-12-27)

The European Central Bank has told Monte that its capital shortfall has jumped to EUR8.8 billion ($9.19 billion) from the EUR5 billion expected (http://www.marketwatch.com/story/monte-paschi-rescue-cost-jumps-as-deposits-fall-2016-12-27-34854939) when the government organized a rescue last week. The latest figure significantly raises the amount the Italian government will have to deploy to rescue the troubled lender.

Shares in Deutsche Bank AG (DBK.XE) (DBK.XE) declined 1.5% after the German lender's $7.2 billion settlement with the U.S. Department of Justice sent its stock sharply higher on Friday.

(END) Dow Jones Newswires

December 27, 2016 12:22 ET (17:22 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.