European Factors-Shares seen up on firm commodity prices

(Updates with company news, quotes, detail, snapshot table)

LONDON, June 1 (Reuters) - European shares were expected to open sharply higher on Monday, tracking gains in Asian and U.S. equity markets, on growing signs of a global economic recovery and stronger commodity prices.

Futures for the DJ Euro STOXX 50 STXEc1, Germany's DAX FDXc1 and the French CAC 40 FCEc1 were up 1.9-2.3 percent. Financial bookmakers earlier expected Britain's FTSE 100 .FTSE to open as much as 1.4 percent higher.

Adding to optimism that the world's third-largest economy is stabilising, the Chinese manufacturing sector continued to expand moderately in May as new export orders improved. The official purchasing managers' index (PMI) fell slightly to 53.1 from 53.5 in April, its third straight month above the mark of 50 that separates expansion from contraction. [ID:nBJB000616]

In the U.S., officials said that General Motors Corp (GM.N) will file for bankruptcy on Monday, forcing the 100-year-old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership. [ID:nN31495007]

The news removed short term uncertainty from the market, traders said.

House prices in England and Wales were unchanged in May, the first time in 20 months that there has been no month-on-month decline, property data company Hometrack said. [ID:nLAG003461]

"Equity markets are poised to start the new trading month significantly higher as traders show no sign of retreat for the summer and instead continue to pick up on the modest recovery indicators that are being seen," said Matt Buckland, a dealer at CMC Markets.

"The planned bankruptcy filing for GM - and prospect of a quick turnaround for the beleaguered car maker - is again adding to the cheer, but whether this is indeed a prudent move remains to be seen."

Commodity shares were expected to gain as crude oil CLc1 rose 1.7 percent to hit a fresh seven-month high on Monday, extending the market's best monthly gains in a decade. Key base metals prices also jumped more than 2 percent.

Japan's Nikkei average .N225 gained 1.6 percent to reach a nearly eight-month closing high on Monday, while the FTSEurofirst 300 .FTEU3 index of top European shares rose 0.2 percent to close at 862.17 points on Friday. Over the week, it gained 0.7 percent. In May, it rose 4 percent, a third straight monthly gain and its best winning streak in two years.

The Dow Jones industrial average .DJI gained 96.53 points, or 1.15 percent, to 8,500.33. The Standard & Poor's 500 Index .SPX climbed 12.31 points, or 1.36 percent, to 919.14. The Nasdaq Composite Index .IXIC rose 22.54 points, or 1.29 percent, to 1,774.33. ----------------------MARKET SNAPSHOT AT 0652 GMT----------------------

LAST PCT CHG NET CHG S&P 500 .SPX 919.14 1.36 % 12.31 NIKKEI .N225 9,677.75 1.63 % 155.25 MSCI ASIA EX-JP .MIASJ0000PUS 399.48 2.76 % 10.74 EUR/USD EUR= 1.4172 0.37 % 0.0052 USD/JPY JPY= 95.17 -0.14 % -0.1300 10-YR US TSY YLD US10YT=RR 3.534 -- 0.07 10-YR BUND YLD EU10YT=RR 3.594 -- 0.01 SPOT GOLD XAU= $981.80 0.37 % $3.60 US CRUDE CLc1 $67.47 1.75 % 1.17

* Japan's Nikkei up after news GM to go bankrupt [ID:nTKU105389]

* Commodity shares, Coca-Cola lift Wall Street [ID:nN29439922]

* Asia stocks, Aussie dollar gain on China PMI [ID:nSP46540]

* Dollar loses footing as investors branch out [ID:nT122504]

* Treasuries-Bonds rebound strongly into month end [ID:nL1348112]

* Oil jumps 1 pct, basking in equities' glow [ ID:nSP429646]

* Gold hits 3-month high; $1,000 eyed [ID:nT329198]

* Metal prices rally; China data, dlr lift sentiment [ID:nSP429585]

COMPANY NEWS

VOLKSWAGEN (VOWG.DE), PORSCHE (PSHG_p.DE)

VW's chief labour representative, Bernd Osterloh, told German newspaper Frankfurter Allgemeine Zeitung he had little faith in Porsche's two top managers and said unions were still sceptical about a merger. [ID:nLT474342]

Qatar is still considering taking a stake in Porsche or other German auto companies, Qatar's prime minister said. [ID:nLU659337]

FIAT (FIA.MI)

A U.S. bankruptcy court judge approved the sale of most of U.S. automaker Chrysler's assets to a group led by Fiat, as expected. [ID:nWEN9770] General Motors (GM.N) will file for bankruptcy later on Monday. [ID:nN31495007]

Germany agreed a deal with Canadian auto parts group Magna MGa.TO, General Motors (GM.N) and the U.S. government to save carmaker Opel, snubbing Fiat's rival offer. [ID:nLU272618].

The failure of Fiat's bid for Opel brought Italy's government under fire from unions and opposition politicians. [ID:nLLV39993]

RIO TINTO (RIO.L)

The global miner has agreed to extend the deadline by which major Chinese shareholder Chinalco must confirm whether it will help fund the planned expansion of Rio Tinto's Yarwun 2 Alumina refinery. [ID:nSYU006609]

BAYER BAYG.DE

A sister compound to Bayer's and Onyx Pharmaceuticals' potential blockbuster Nexavar showed promise against kidney cancer in a Phase II study, raising the stakes in a legal row between the two partners. [ID:nLS934112]

ROYAL DUTCH SHELL (RDSa.L)

The oil giant plans to cut 350-450 senior management roles as it restructures to cut costs and improve its operational performance according to a website to which Shell employees post internal information. [ID:nLU499375 ]

ELAN CORP (ELN.I)

Irish biotechnology firm Elan is in advanced discussions to sell a minority stake to Bristol-Myers Squibb Co (BMY.N), a source familiar with the situation said on Sunday. [ID:nN31417370]

BASF BASF.DE

Chemicals maker DuPont (DD.N) said it has filed a lawsuit against BASF, claiming the German company infringed four patents relating to biotechnology traits. [ID:nWNAB4826]

ASTRAZENECA (AZN.L)

The pharmaceutical giant's Zactima, which failed two earlier trials, was shown in a pivotal study to extend the amount of time patients survived without their lung cancer worsening, researchers said on Saturday. [ID:nN30385063]

ARCANDOR (AROG.DE)

The head of the Social Democrats, ruling partners with Chancellor Angela Merkel's conservatives, supported offering Arcandor a state crutch, but a leading conservative opposed it, heightening the rift in Berlin over who deserves a bailout. [ID:nLV68794]

HYPO REAL ESTATE HRXG.DE

Hypo Real Estate will need more state support even after a capital increase the German government is pushing through to take full control of the lender, its CEO said. U.S. investor J.C Flowers reiterated it would not support a capital increase. [ID:nLV36188]

ENEL (ENEI.MI)

The utility launches its capital increase. The offer is 13 new shares for every 25 held at a price of 2.48 euros per share, aimed at raising nearly 8 billion euros. [ID:nLS328869]

UBI BANCA (UBI.MI)

The bank is in the spotlight of Il Sole 24 Ore's regular "Letter to the Investor" column on Sunday. The newspaper says it should turn in profit of around 350 million euros for 2009. Chief Executive Victor Massiah says in the article that the bank's industrial plan should be presented by year-end.

ENEL (ENEI.MI), EDISON (EDN.MI), SNAM (SRG.MI), HERA (HRA.MI)

Algeria will increase the capacity of its main gas export pipeline to Italy by 7 billion cubic metres (bcm) a year and speed up work on a new route, Algeria's energy minister said. Partners in the project include Enel, Edison, Hera and Snam Rete gas. [ID:nLV598615]

(Reporting by Atul Prakash)