European shares gain on falling crude prices

LONDON, Sept 2 (Reuters) - European shares rose on Tuesday as a slide in crude prices tempered inflation concerns and boosted banking stocks, while AXA (AXAF.PA) led insurers higher on relief that Hurricane Gustav was weaker than feared.

The FTSEurofirst 300 .FTEU3 index of top European shares unofficially closed 0.85 percent higher at 1,199.43 points, after trading in a broad range of 1,182.72-1,205.80 points.

The index fell 0.45 percent on Monday and is down 20 percent this year.

Across Europe, Britain's FTSE .FTSE rose 0.3 percent, while Germany's DAX .GDAXI and France's CAC .FCHI both jumped 1.5 percent.

BNP Paribas (BNPP.PA) rose more than 4 percent, Credit Agricole (CAGR.PA) was up nearly 4 percent, Dexia (DEXI.BR) advanced 3.6 percent and Fortis FOR.BR gained 4 percent.

Oil CLc1 traded around $109 a barrel after sliding to five-months lows after initial reports showed Hurricane Gustav had spared major U.S. Gulf oil facilities.

But lower crude prices put pressure on energy stocks. BP (BP.L), Royal Dutch Shell (RDSa.L), gas producer BG Group (BG.L) and Tullow Oil (TLW.L) shed between 1.8 and 5.1 percent. (Reporting by Atul Prakash)