European Factors -- Shares to inch higher, volumes seen thin

(Adds futures, company news; updates snapshot table)

LONDON, May 25 (Reuters) - European stock index futures pointed to a
slightly higher start for equities on Monday, after losses in the previous two
sessions, with trading volumes likely to be thin because of a public holiday in
Britain.

Futures for the Euro STOXX 50 STXEc1, Germany's DAX FDXc1 and the French
CAC 40 FCEc1 were up between 0.1 percent and 0.2 percent.

Investors were seen trading cautiously after North Korea said it had
successfully conducted a nuclear test. [ID:nSEO141656] Japan's Nikkei stock
average .N225 rose 1.3 percent after paring gains following the test, but the
impact was expected to be limited with upcoming economic indicators carrying
more weight with investors.

Energy shares will be in focus as crude oil prices CLc1 fell 0.5 percent
towards $61 a barrel.

"Today, the odds are higher than fifty-fifty, that the going remains calm.
Due to local holidays in the UK and the U.S.A. we expect a trading session with
only moderate volume and volatility," Close Brothers Seydler wrote in a note.

European shares ended lower for the second day in a row on Friday, further
cooling a rally that has added a third to stock prices in the past 10 weeks, as
defensives and Swiss stocks weighed. The FTSEurofirst 300 .FTEU3 index ended
0.2 percent lower.

U.S. stocks fell for a fourth day on Friday on persistent worries about the
budget deficit, with Treasuries and the dollar losing ground. U.S. Markets will
also be closed on Monday for a public holiday.

* Nikkei pares gains after N.Korea test, but impact limited [ID:nT339374]

* Wall St slips late as budget worries linger [ID:nLP587249]

* Dollar steady near 5-month low, U.S. auctions eyed [ID:nT122580]

* Treasuries-Selloff persists on debt worries before supply [ID:nLP592072]

* Shanghai copper gains 1 pct; LME, COMEX shut [ID:nSP475592]

* Gold softens slightly, ETF holdings inch up [ID:nSP121279]

* Oil falls towards $61 on N.Korea nuclear test [ID:nSYD459549]

* N.Korea nuclear test hits stocks, impact limited [ID:nLP594832]

COMPANY NEWS:

FIAT (FIA.MI)

Magna International and Fiat have improved their offers for General Motors
unit Opel ahead of a crucial week in which the German government is expected to
decide which bid it backs. [ID:nLO709586]

Germany's Economy Minister said on Sunday the three bids for Opel were still
unacceptable because too much potential financial risk would lie with the
government. [ID:nLO436243]

Fiat said in court papers on Friday it is "already concerned" about the
"deteriorating value" of Chrysler's assets and that a U.S. district court should
not obstruct its sale process. [ID:nN22385982]

BANKS

Switzerland's banking authority has subjected banks in the country to a
stress test to assess how they would withstand a shock to their loan books,
Swiss weekly NZZ am Sonntag reported on Sunday.

Germany's WestLB denied media reports BaFin could retract its banking
licence in autumn because there was a risk of its core capital ratio falling
below the mandatory 4 percent.

Focus magazine reported Helmut Linssen, finance minister of
Northrhine-Westphalia, as saying there were positive signals in support of a
merger of German Landesbanks WestLB with LBBW and HSH Nordbank into one bank.

Dutch state-controlled bank ABN AMRO NV said it lost 886 million euros
($1.24 billion) after tax in the first quarter. The bank said most of its losses
came from the parts of its business attributable to the Royal Bank of Scotland.
The businesses acquired by the Dutch state showed a gain of 87 million euros.

PORSCHE (PSHG_p.DE)

Porsche received a 700 million euro bridge loan from Volkswagen, VW finance
spokeswoman said. [ID:nLO689578]

COLONIAL (COL.MC)

The Spanish real estate firm controlled by Popular (POP.MC) and La Caixa
plans to create a holding company with banks for toxic property assets,
Expansion reported, citing unnamed sources close to the project.

SAINT-GOBAIN (SGOB.PA)

French building materials group Saint-Gobain is in the market with a 2
billion euro, thee-year refinancing loan, two bankers said on Friday.
[ID:nLM625151].

ENEL (ENEI.MI)

Italy's biggest utility expects rating agencies to remove it from credit
watch negative after it completes its 8 billion-euro rights issue, its finance
director said in an interview published on Saturday. [ID:nLN663939]

DEUTSCHE BANK (DBKGn.DE)

Germany's largest bank and German financial watchdog BaFin have launched
investigations into a possible security breach at the lender, Deutsche Bank said
on Friday. [ID:nLM973701]

DASSAULT AVIATION (AVMD.PA)

Dassault Aviation (AVMD.PA) is in talks with the United Arab Emirates over a
possible order for its Rafale fighter jets, the company said on Saturday, in
what would be the first sale of the aircraft to a foreign buyer.

Newspaper Le Parisien reported earlier on Saturday that France was
finalising the sale of 60 Rafale jets in a deal worth 6-8 billion euros ($8-11
billion). [ID:Nln463023].

ITALCEMENTI (ITAI.MI)

The cement maker's earnings before interest, tax, depreciation and
amoritsaion in 2009 are seen at around 950 million euros, against 1.113 billion
euros in 2008, I Sole 24 Ore said on Sunday.

FRANCE TELECOM (FTE.PA)

Egypt's market regulator has delayed ruling on a bid by a France Telecom
unit for mobile operator Mobinil (EMOB.CA), saying it needed more documents from
the French firm, state news agency MENA said on Friday. [ID:nLM966595].

GERMAN RETAILERS

Germany's retail sector will see more companies going bust due to
overcapacity of around 25 percent and department stores will go down first, the
head of German retail group Tengelmann predicted in an interview. [ID:nLN705481]

(Reporting by Atul Prakash; Editing by Dan Lalor)