LONDON, Feb 26: Europe's main stock markets began the week strongly, with Frankfurt's DAX 30 back above 7,000 points at the half-way stage on Monday, after shrugging off a rally in oil prices.

London's FTSE 100 index of leading shares rose 0.59 per cent to 6,439.00 points in late morning deals.

Frankfurt's DAX 30 index gained 0.50 per cent to 7,027.70 points in early afternoon trade and in Paris the CAC 40 won 0.75 per cent to 5,759.41.

The DJ Euro Stoxx 50 index of eurozone blue chip shares increased 0.60 per cent to 4,271.35 points. The euro stood at 1.3156 dollars.

European equities overlooked rising oil prices, which reached above 61 dollars in London and New York. More expensive oil increases companies' costs, while leaving consumers with less disposable income.

US shares had ended weaker on Friday as rising crude oil prices sparked fears of renewed inflationary risks and lessened the odds of interest rate cuts any time soon, traders said.

Heading the FTSE 100 in London was Associated British Foods, which surged 4.95 per cent to 847.5 pence after reiterating its earnings guidance for its year to mid-September 2007.

Allianz meanwhile shot up 3.63 per cent to 170.02 euros in Frankfurt after broker upgrades.

In Paris steel giant Arcelor Mittal won 2.94 per cent to 40.67 euros, aided by rebounding steel prices and in response to the positive outlook it gave last week.

On Friday in New York, the Dow Jones Industrial Average finished down 0.29 per cent at 12,648.93 points.

The tech-laden Nasdaq composite ended down 0.39 per cent at 2,515.10 points, while the broad-market Standard and Poor's 500 index finished 0.36-per cent at a preliminary close of 1,451.19.—AFP