Europe Factors-Shares set to resume rally on earnings hope

(Adds details, company news, futures; updates snapshot)

PARIS, July 27 (Reuters) - European equities were set to rise on Monday,
tracking lofty gains in Asia and resuming a two-week rally, on investors' hopes
of a further recovery in corporate earnings.

By 0633 GMT, futures for the DJ Euro Stoxx STXEc1, for Germany's DAX
FDXc1 and for France's CAC FCEc1 were up between 1.2 percent and 1.5
percent, while spreadbetters were looking for London's FTSE .FTSE to open up
30 to 53 points, or as much as 1.2 percent.

The FTSEurofirst 300 .FTEU3 index of top European shares ended a shade
lower on Friday after advancing for nine straight sessions, a rally fuelled by
better-than-expected company results. The index, which surged 11.4 percent over
the past two weeks, has gained 41 percent since reaching a record low in early
March.

Japan's Nikkei share average .N225 climbed 1.7 percent on Monday, while
oil also gained ground, with U.S. light crude aiming for a ninth straight
session of rises, heading to $69 a barrel.

Investors were bracing for more corporate results on Monday, with U.S.
companies such as Honeywell (HON.N) and Verizon (VZ.N)> due to post quarterly
earnings.

In Europe, Dutch mail company TNT NV TNT.AS posted quarterly sales and
profit that missed expectations, while Ryanair (RYA.I) posted a
better-than-expected jump in first quarter profit thanks to a large reduction in
fuel costs but said its outlook remained cautious for the rest of the year.

On the macro front, investors will keep an eye on U.S. new home sales data
for June, looking for signs of a turnaround in the embattled housing sector.

----------------------MARKET SNAPSHOT AT 0631 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 979.26 0.3 % 2.97

NIKKEI .N225 10,088.66 1.45 % 144.11

MSCI ASIA EX-JP .MIASJ0000PUS 426.65 1.39 % 5.85

EUR/USD EUR= 1.4255 0.22 % 0.0031

USD/JPY JPY= 94.81 0.07 % 0.0700

10-YR US TSY YLD US10YT=RR 3.699 -- 0.04

10-YR BUND YLD EU10YT=RR 3.499 -- 0.02

SPOT GOLD XAU= $955.20 0.51 % $4.85

US CRUDE CLc1 $68.92 1.28 % 0.87

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* Nasdaq ends 12-day run of gains; Dow, S&P 500 rise [ID:nN24488345]

* Rally in Asia stocks builds; eyes on earnings [ID:nSP429421]

* Nikkei hits highest in 9 months on earnings hopes [ID:nTKW006519]

* Oil extends gains toward $69 on Asian stocks rally [ID:nSYD211712]

* Euro, yen crosses edge up as stocks rally [ID:nT325645]

* TREASURIES-Edge down as regional stocks rise [ID:nT103249]

* Gold inches up on weak dlr, ETF holdings steady [ID:nT72054]

* Shanghai aluminium rises by limit on econ hopes [ID:nMAN299897]

COMPANY NEWS:

TNT TNT.AS

Core profits at Dutch mail company TNT NV TNT.AS fell 45 percent in the
second quarter, the company reported on Monday, its fourth consecutive quarterly
year on year decline as it copes with weaker demand for delivery services in
Europe. For details, see: [ID:nLR113766]

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

Europe's biggest carmaker is considering a 4 billion euro ($5.7 billion)
capital increase to offset the credit rating impact of its merger with Porsche
(PSHG_p.DE), Financial Times Deutschland reported on Monday. A Volkswagen
spokeswoman declined to comment on the report. For details, see:
[VOWG.DE-LEN-RTRS]

RYANAIR (RYA.I)

Irish airline Ryanair posted a better-than-expected 550 percent rise in
first quarter profit thanks to a large reduction in fuel costs but said its
outlook remained cautious for the rest of the year. For details, see:
[ID:nLO272691]

ERICSSON (ERICb.ST)

The telecom equipment maker said on Saturday it had won an auction for the
wireless assets of bankrupt Nortel Networks Corp (NRTLQ.PK), paying $1.13
billion for the crown jewels of the Canadian telecom company. [ID:nN25483564]

Separately, Ericsson's chief financial officer told German newspaper
Handelsblatt on Sunday there were no talks about Ericsson leaving its mobile
joint venture with Japan's Sony. [ID:nL0705961]

JULIUS BAER (BAER.VX)

Julius Baer, Switzerland's third-biggest asset manager, said on Monday
first-half outflows at its hedge funds division, GAM, slowed from the second
half of 2008 as redemptions fell substantially by mid-year. For related news
click on [BAER.VX-LEN-RTRS]

THALES (TCFP.PA)

Europe's largest defence electronics company Thales posted a sharp fall in
first-half operating profit on Monday as tough economic conditions and higher
development costs on the A400M military plane took their toll. For details, see:
[TCFP.PA-LEN-RTRS]

COMMERZBANK (CBKG.DE)

Commerzbank's revamp of its investment banking operation is proceeding well
ahead of schedule, the head of Corporate Finance division told Handelsblatt in
an article which appeared on Monday. He said the reorganisation would be
completed in London tentatively in September compared to the previous target of
end-2010. [ID:nL0700986]

THOMSON SA TMS.PA

The French media technology group reached a debt-for-equity restructuring
deal with its creditors. For details, see: [ID:nL0331877]

TF1 (TFFP.PA)

The commercial TV broadcaster kept a cautious outlook as it reported a
plunge in first half profits. For details, see:[ID:nLO327677]

SUEZ (SEVI.PA), GAS NATURAL (GAS.MC)

France's Suez Environnement (SEVI.PA) does not plan to remain a stakeholder
in Spanish gas group Gas Natural (GAS.MC) for the long term, Suez's managing
director said in an interview with Spanish daily Expansion on Saturday.

For the full story, click on [ID:nLP562001]

GDF SUEZ (GSZ.PA)

Gulf Investment Corporation (GIC) and France's GDF Suez (GSZ.PA) have sold a
total 30 percent stake in their $2.1 billion Al Dur power and water project in
Bahrain, a GIC spokesman said on Sunday. For details, see:[ID:nLQ679876]

ANHEUSER-BUSCH INBEV (ABI.BR)

The world's largest brewer complets the sale of South Korea's Oriental
Brewery to Kohlberg Kravis Roberts & Co for $1.8 billion. AB InBev says it
expects to record a non-recurring gain of $440 million in the third quarter. For
details, see: [ABI.BR-LEN-RTRS]

(Reporting by Blaise Robinson)