LONDON, Jan 9: European stock markets climbed on Tuesday, lifted by advances on Wall Street and in Japan, rising metal prices and fresh takeover speculation, dealers said.

A sharp drop in oil prices was also supporting many share prices, as companies mulled the prospect of lower energy costs.

London's FTSE 100 index of leading shares rose 0.35 per cent to 6,215.90 points, in Frankfurt the DAX 30 index gained 0.76 per cent to 6,657.71 points and the Paris CAC 40 increased 0.81 per cent to 5,563.08 points.

The DJ Euro Stoxx 50 index of eurozone blue chip shares advanced 0.66 per cent to 4,150.42 points. The euro stood at $1.3029.

US share prices gained Monday in a late-day rebound after a drop in crude prices and following upbeat comments on the US economy from the Federal Reserve vice chairman, dealers said.

Oil prices slumped by almost a dollar on Tuesday, trading below $55 per barrel in London, as the market continued to focus on the warm winter in the United States, which has pushed down demand for heating fuel.

Japanese share prices closed higher Tuesday as investors returned from a three-day weekend in upbeat mood.

In London, heavyweight mining companies rose after copper and gold prices climbed.

Anglo-Australian miner Rio Tinto jumped 2.01 per cent to 2,585 pence and Anglo-Swiss group Xstrata gained 1.94 per cent to 2,359 pence.

French glass company Saint-Gobain meanwhile surged to the top of the CAC 40 in Paris, surging 5.77 per cent to 68.75 euros, after Dutch broker ABN Amro recommended that its clients buy the stock owing to expectations that the group could soon face a takeover bid.

Europe's main stock markets recently struck the highest levels for six years, largely due to expectations that 2007 would see a new wave of takeover activity following fervent company buying last year.

In New York on Monday, the Dow Jones Industrial Average rose 0.21 per cent to close at 12,423.49 points after trading down more than 50 points in the session.

The Nasdaq composite advanced 0.16 per cent to 2,438.20 points and the broad-market Standard and Poor's 500 index increased 0.22 per cent to 1,412.84.

On Tuesday in Asia, the Tokyo Stock Exchange's Nikkei-225 index of leading shares gained 0.86 per cent to close at 17,237.77 points.

Hong Kong's key Hang Seng Index ended 0.66-per cent lower, in part due to profit-taking in some property stocks.—AFP