LONDON (Dow Jones) - European markets declined on Monday after Hurricane Katrina sent front-dated crude oil futures to record highs, and as U.S. markets finished at a seven-week low on Friday.

The German DAX 30 slipped 0.51% at 4,759 and the French CAC 40 fell 0.19% to 4,334. London markets were closed for a holiday.

Oil prices temporarily traded over $70 a barrel in electronic trade after Hurricane Katrina increased in strength over the weekend to a category 5 rating. The hurricane is expected to hit the U.S. coast at around 8 am Eastern Time .

October front-dated contracts were last up $2.97 at $69.10 a barrel.

U.S. storm damage fears pushed European re-insurers, including Munich Re , Hannover Re and Swiss Re lower, while other insurers, including Allianz , Aegon and ING, also declined.

However, French oil company Total, one of the only European oil majors to trade on Monday, added 0.7%.

The lower end to the U.S. trading week on Friday, wrapped up a down week for the markets as investors worried about the impact of high energy costs on economic growth.

The pan-European Dow Jones Stoxx 600 index slipped 0.18% to 281.32.

The euro added 0.22% to $1.2318.

German consumer confidence improved for the first time since April, according to the GfK consumer climate survey, which showed a revised reading of 3.2 points in August. The consumer climate is expected to improve to a reading of 3.4 points in September.

The overall development suggests that the national election scheduled for September is having a positive effect on consumer mood, the survey indicated.

In other news, Amsterdam-based publisher Wolters-Kluwer declined 0.3%, with the broader AEX index down 0.38% at 383, after it announced that it will buy NDCHealth's pharmaceutical information management business for $382 million in cash.

Swiss pharmaceutical giant Novartis AG gained ground on Monday, adding 0.6% after it said that the U.S. Food and Drug Administration has granted its Femara drug priority review for a new indication as an adjuvant treatment for post-menopausal women with early breast cancer.