Oil prices steadied yesterday after a $ 1 fall the previous day due to mild weather forecasts, while the yen gained broadly after a Bank of Japan (BoJ) policymaker signalled that interest rates could rise soon. European stocks were higher, helped by corporate takeover speculation.

Silver hit a fresh six-month high, though gold stalled below a key resistance level of $ 650 an ounce. Recent dollar weakness has helped boost the prices of precious metals by making them cheaper for non-US buyers.

Oil prices were steadying as the possibility of a further output cut by Opec producers who meet next week was balanced by milder weather and expected strong fuel stockpiles in the United States.

US crude was trading at around $ 62.63 a barrel after falling nearly $ 1 the day before. London?s Brent crude was little changed yesterday at $ 63.32 a barrel.

In Europe, FTSEurofirst 300 climbed half a percent to 1 437.78 points. Among gainers in London, Vodafone was up 1.9 percent after Goldman Sachs upgraded the stock.

European companies seem to have weathered the stronger euro, which hit 20-month highs against the dollar and record peaks versus the yen.

A stronger than expected reading in the euro zone services sector survey reinforced expectations that the European Central Bank will raise interest rates this week and might move again in early 2007.

In Japan, rate hike expectations were given a boost after BOJ Policy Board member Atsushi Mizuno said that the Central bank needed to wait until all economic indicators were strong to raise interest rates.

The yen gained half a percent versus the euro and hit a four-month high of 114.67 per dollar.

Later, investors will look to the US Institute for supply management?s non-manufacturing gauge for November for clues on whether growth in the world?s largest economy is slowing sufficiently to necessitate interest rate cuts in 2007.