July 6 (Bloomberg) -- European stocks rose, led by oil companies, after the price of crude climbed and Deutsche Bank AG improved its outlook for producers.

Royal Dutch Shell Plc and BP Plc lifted the Dow Jones Europe Stoxx Oil & Gas Index to a record. BHP Billiton Ltd. gained for a seventh day after Credit Suisse Group said the world's biggest mining company may expand in Latin America to meet growing demand from China. UBS AG rose as the largest money manager ousted Chief Executive Officer Peter Wuffli. PSA Peugeot Citroen SA, Europe's second-biggest carmaker, climbed on plans to raise market share.

Europe's Stoxx 600 added 0.6 percent to 397.27, bringing this week's gain to 0.9 percent. The Stoxx 50 advanced 0.8 percent, and the Euro Stoxx 50, a measure for the euro region, increased 0.7 percent.

``The environment for stocks remains positive,'' said Karsten Stroh, who manages $15 billion as head of equities at JPMorgan Asset Management in Frankfurt. ``We continue to be overweight European equities.''

The benchmark Stoxx 600 has gained 3.2 percent in the past month as concerns eased that rising interest rates will weigh on profit. Deutsche Bank strategists said this week the index will reach a record by year end, buoyed by takeovers and earnings.

National benchmarks gained in 15 of the 18 western European markets. The U.K.'s FTSE 100 added 0.8 percent as did Germany's DAX. France's CAC 40 advanced 0.7 percent.

Indexes dipped after a report showed the U.S. added 132,000 workers to payrolls last month. Economists projected payrolls would rise by 125,000, according to a Bloomberg News survey. Yields on 10-year treasuries rose after the report.

``Rising bond yields pulled stocks down as the strong labor market fanned interest-rate concerns,'' said Carsten Klude, who helps manage $20 billion as head of investment strategies at M.M. Warburg & Co. in Hamburg. ``In my view that reaction was exaggerated. Rising incomes are good for private consumption.''

BP, Total

Shell, Europe's biggest oil company, climbed 2.9 percent to 2115 pence. Deutsche Bank raised its recommendation on the stock to ``buy'' from ``hold'' and increased the price estimate 23 percent to 2375 pence.

BP, the region's second-largest oil company, gained 1.1 percent to 610.5 pence. Analysts lifted their estimate 16 percent to 670 pence. Total, the biggest refiner, gained 2.7 percent to 61.86 euros. Its projection was increased 16 percent to 71 euros.

Crude oil for August delivery rose as much as 1.6 percent to $72.94 a barrel on the New York Mercantile Exchange.

Cairn Energy Plc jumped 5.9 percent to 1872 pence. The oil explorer won approval from India's government to build a pipeline from an oil project in western India, clearing the last hurdle before development of the field, an official at partner Oil & Natural Gas Corp. said.

BHP, UBS

BHP gained 3.7 percent to 1516 pence. The world's largest mining company could add a third concentrator at Escondida, the world's largest copper mine, in Chile, Credit Suisse analysts Peter O'Connor, Jeremy Gray and Pablo Kohen said in a report yesterday, citing a briefing with incoming Chief Executive Officer Marius Kloppers.

Shares of UBS gained 0.8 percent to 74.4 Swiss francs. Deputy CEO Marcel Rohner will replace Wuffli, effective immediately, UBS said in a statement late yesterday. Marcel Ospel, 57, agreed to stay on as chairman for at least another three years after the board rejected his proposal to have Wuffli succeed him.

UBS removed Wuffli after the company shut its Dillon Read Capital Management LLC unit in May at a cost of $300 million.

``The market may speculate that this raises the likelihood of a split between the investment bank and wealth management,'' said Gary Clarke, who manages $9.5 billion at Schroders Plc in London, including UBS shares. ``I'm not so sure.''

Rohner said today there's no plan to sell the securities unit.

Peugeot, Stora Enso

Peugeot climbed 5.8 percent to 65.03 euros. The carmaker said its market share in the region rose 0.2 percentage point to 14.2 percent in the first half. The company ``expects to see continued improvement in market share'' this year, Peugeot said.

Bayerische Motoren Werke AG advanced 2.5 percent to 49.25 euros. The world's largest maker of luxury cars said sales increased 15 percent to a record last month as customers bought new versions of the X5 sport-utility vehicle and the Mini.

Stora Enso Oyj, Europe's biggest papermaker, gained 2.2 percent to 14.19 euros. M-real Oyj, Finland's third-largest papermaker, jumped 7.3 percent to 5.17 euros. Deutsche Bank lifted its price projections for both stocks and said they were the ``top picks'' among papermakers.

The industry will see a second ``wave'' of mergers and acquisitions, and plant closures, boosting papermaker stocks, London-based analyst Mathias Carlson wrote in a note to investors. He raised the estimate for Stora Enso 17 percent to 17 euros, and the projection for M-real to 6.5 euros from 6 euros.

Rhodia, Premiere

Rhodia SA advanced 6.1 percent to 35.31 euros. Morgan Stanley raised its estimate for France's largest specialty chemicals maker to 42 euros from 40.8 euros, citing price increases for some of its products.

Premiere AG climbed 5 percent to 19.46 euros. Germany's biggest pay television company broadcaster may get back the rights to show the country's top soccer game.

Unity Media GmbH, Germany's second-biggest cable company, may give back the rights to broadcast Germany's Bundesliga soccer league to Premiere, newspaper Frankfurter Allgemeine Zeitung said today, citing some documents. Spokespeople for Premiere and Unity couldn't be reached immediately to comment on the report.

SIG Plc soared 8.4 percent to 1458 pence. Britain's biggest supplier of insulation and roofing materials said first-half profit jumped 29 percent, helped by acquisitions and buoyant demand for its products in the U.K., Germany and Poland.

Aker Yards ASA plummeted 27 percent to 78 kroner. Europe's largest shipbuilder said second-quarter profit fell because of the rising cost of building ferries in Finland and cut its annual forecast.

To contact the reporter on this story: Andreas Hippin in Frankfurt at ahippin@bloomberg.net.

Last Updated: July 6, 2007 12:17 EDT