Energy stocks lead the way as Europe makes solid gains

European markets posted solid gains on Friday, with the energy sector in particular lifted by higher crude oil prices, dealers said.

Gains were capped by investor caution ahead of the meeting of G7 finance ministers and central bankers over the weekend.

London's FTSE 100 index of leading shares added 0.72 percent to 6,462.40 points, Frankfurt's DAX 30 gained 0.97 percent to 7,212.07 and in Paris the CAC 40 rose by 0.70 percent to 5,789.34 points.

The DJ Euro STOXX 50 index of eurozone blue chip shares won 0.87 percent to 4,317.35 points.

Heavyweight companies in Europe were boosted by rising crude oil prices, which increase their profits.

The price of Brent North Sea crude hit a seven-month high of US$69.59 a barrel on concerns that current oil supplies might be insufficient to meet demand, traders said.

In London, shares in energy giant BP leapt 2.31 percent, and Anglo-Dutch peer Royal Dutch Shell saw its "B" shares jump 2.30 percent.

In Paris, shares in oil and gas group Total added 1.40 percent.

A leading Frankfurt performer was SAP, the world's biggest maker of business software, whose share price rocketed 2.94 percent after broker Merrill Lynch repeated its "buy" rating on the stock.

"There are some far-flung rumors going around of a possible takeover from Microsoft, but this reiteration has been the main event today for SAP shares," one anonymous Frankfurt trader said.

BASF led gainers in Frankfurt, soaring by 3.22 percent on speculation the chemical company could receive a takeover offer from the US group DuPont.

In Amsterdam, meanwhile, the AEX index gained 0.92 percent to 523.68 points, the Swiss SMI added 0.7 percent to 9,177.48, in Milan the SP/MIB gained 0.61 percent to 43,016, in Madrid the IBEX-35 rose by 0.55 percent to 14,965.3 and in Brussels the BEL-20 closed 0.29 percent higher at 4,581.26 points.