European Factors -- Shares set to open higher; eyes on earnings

(Adds analyst quote, futures, company news, updates snapshot table)

FRANKFURT, July 23 (Reuters) - European shares were poised for gains on
Wednesday, taking their cue from Wall Street on the back of crude oil prices
falling below $128 a barrel CLc1, a six-week low.

"The oil price will continue to play an important role. A further slide
would have a positive effect on the stock markets," German bank Helaba said in a
morning note.

Futures on leading European stock market indexes rose before the opening
bells; DJ Euro Stoxx 50 futures STXEc1 by 1 percent, German DAX FDXc1
futures by 0.9 percent and French CAC 40 futures FCEc1 also by 0.9 percent.

Those gains were in line with pre-market indications from financial
spreadbetters.

Corporate earnings were likely to be in the focus, with heavyweights such as
miner BHP Billiton (BLT.L), drugs maker GlaxoSmithKline (GSK.L) and car maker
Volkswagen among European companies scheduled to release quarterly reports.

Wall Street's benchmark S&P 500 index .SPX rose 1.35 percent on Tuesday as
consumer stocks like Coca-Cola (KO.N) and Wal-Mart (WMT.N) and airlines -- all
sensitive to fuel costs -- gained as oil prices tumbled.

"Given the input from the United States, we are expecting a higher opening
in Europe," said Heino Ruland, an analyst at FrankfurtFinanz.

-----------------MARKET SNAPSHOT AT 0630 GMT----------------------

LAST PCT CHG NET CHG
S&P 500 .SPX 1,277.00 1.35% 17.0
NIKKEI .N225 13,312.93 0.97% 127.97
MSCI ASIA EX-JP .MIASJ0000PUS 485.62 2.51% 11.87
EUR/USD EUR= 1.5768 -0.13% -0.0025
USD/JPY JPY= 107.60 0.30% 0.3200
10-YR US TSY YLD US10YT=RR 4.132 -- 0.03
10-YR BUND YLD EU10YT=RR 4.691 -- 0.05
SPOT GOLD XAU= $942.30 -0.29% -$2.70
US CRUDE CLc1 $127.61 -0.63% -$0.81
-------------------------------------------------------------------
* US STOCKS-Up as oil's drop trumps earnings, Yahoo up late [ID:nN22330670]
* GLOBAL MARKETS-Oil falls, supporting Asia stocks, dollar firm [ID:nL23424095]
* Nikkei ends up 1 pct, led by property firms [ID:nTKV003155]
* Oil near six-week low on demand woes [ID:nSP326180]
* TREASURIES-Extend slide in Asia on rate rise remarks [ID:nT339400]
* Dollar holds ground after rally; kiwi falls [ID:nT344279]
* Gold near 2-week low on weak oil; platinum bounces [ID:nSP43899]

COMPANY NEWS

VODAFONE (VOD.L)

The world's largest mobile phone group by revenue is to introduce a 1
billion pound ($2 billion) share buy back programme, after its shares slumped
following its first-quarter results. [ID:nWLA6697]

Related news [VOD.L-E]

KPN (KPN.AS)

The Dutch telecoms group reported flat second-quarter core earnings, as
expected, even as revenue rose 22 percent driven by the acquisition of
lower-margin IT services company Getronics. [ID:nWEA2760]

Related news [KPN.AS-E]

TELENOR (TEL.OL)

The Norwegian telecoms company reported a surprise 1.5 percent fall in
second quarter core earnings and cut its 2008 revenue growth target as resurgent
inflation in emerging markets crimps spending on telephony. [ID:nL23388846]

Related news [TEL.OL-E]

UNICREDIT (CRDI.MI)

The Italian financial group's Deputy Chief Executive Officer Sergio Ermotti
said the global mergers and acquisitions market remained fragile and was
unlikely to pick up in the foreseeable future. [ID:nL22101200]

Related news [CRDI.MI-E]

ROYAL BANK OF SCOTLAND (RBS.L)

Commonwealth Bank of Australia (CBA.AX) said it was in talks to buy ABN
AMRO's Australia and New Zealand operations. [ID:nSYD199900]

Related news [RBS.L-E]

JULIUS BAER (BAER.VX)

The Swiss bank's first-half net profit fell 2 percent to 510 million Swiss
francs ($502 million), but beat market forecasts. [ID:nWEA2727] [ID:nL2259098]

Related news [BAER.VX-E]

BHP BILLION (BLT.L)

The world's largest mining group said annual production rose in 13
commodities. Fourth quarter copper output was up 14 percent versus the
comparable year ago period, while iron ore rose 15 percent, though coal used in
steel making dropped 18 percent. [ID:nSYU004781]

Related news [BLT.L-E]

MERCK KGaA (MRCG.DE)

The German drugs and chemicals company reported a 15 percent rise in second
quarter operating profit to 320.5 million euros ($510 million), slightly missing
market expectations. [ID:nWEA2732] [ID:nL23834795] [ID:nL22292995]

Related news [MRCG.DE-E]

PSA PEUGEOT CITROEN (PEUP.PA)

The French car maker said its first-half operating margin rose to 3.6
percent, beating market expectations of 3.3 percent, from 2.7 percent a year
earlier. [ID:nL22100333]

Related news [PEUP.PA-E]

CONTINENTAL (CONG.DE)

The supervisory board of the German tyres and car parts supplier meets with
Chief Executive Manfred Wennemer expected to unveil a defence against privately
owned German ball bearings maker Schaeffler's unsolicited takeover bid. Wennemer
plans to ask the board to approve a capital increase of as much as 10 percent, a
German newspaper reported. [ID:nL22944038] [ID:nL22872745] [ID:nWEA2654]

Related news [CONG.DE-E]

VOLVO (VOLVb.ST)

The Swedish truck maker reported a second quarter operating profit of 7.19
billion Swedish crowns ($1.21 billion), in line with expectations, although
sales were below market consensus. Volvo said the trend toward increased caution
among European customers had strengthened during the quarter. [ID:nSAT005401]

Related news [VOLVb.ST-E]

ROCHE (ROG.VX)

The Swiss drug maker's plan to buy U.S. Genentech Inc DNA.N runs the risk
of triggering an exodus of employees hesitant to work for a big company,
industry sources said. [ID:nN22311160]

Related news [ROG.VX-E]

(Reporting by Peter Starck)