Europe Factors-Shares set to dip as Shanghai stocks sag

(Recasts with futures, details; updates snapshot)

PARIS, July 29 (Reuters) - European stocks were set to fall on Wednesday,
after a flurry of company earnings and as a sell-off in Chinese stocks on
worries that banks may begin to restrict lending rattled investors.

By 0648 GMT, futures for the DJ Euro Stoxx STXEc1, for Germany's DAX
FDXc1 and for France's CAC FCEc1 were down between 0.1 percent and 0.3
percent, after gaining as much as around 0.7 percent earlier.

The Shanghai Composite Index .SSEC tumbled 4 percent, led lower by
property and steel shares.

The FTSEurofirst 300 .FTEU3 index of top European shares lost 1 percent on
Tuesday, as BP's (BP.L) results put pressure on energy stocks and weak U.S.
consumer confidence weighed on the market.

The FTSEurofirst 300 has surged 11 percent since July 10, a rally fuelled by
better-than-feared company results. The index has gained 40 percent since
reaching a record low in early March.

Tech and media shares will be in focus after a source familiar with the
situation said Microsoft Corp (MSFT.O) and Yahoo Inc (YHOO.O) have agreed to an
online search and advertising partnership, in an attempt to rival Google Inc,
(GOOG.O).

----------------------MARKET SNAPSHOT AT 0650 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 979.62 -0.26 % -2.56

NIKKEI .N225 10,113.24 0.26 % 25.98

MSCI ASIA EX-JP .MIASJ0000PUS 423.19 -2.34 % -10.14

EUR/USD EUR= 1.414 -0.23 % -0.0032

USD/JPY JPY= 94.16 -0.33 % -0.3100

10-YR US TSY YLD US10YT=RR 3.648 -- -0.04

10-YR BUND YLD EU10YT=RR 3.422 -- -0.01

SPOT GOLD XAU= $935.25 -0.15 % -$1.40

US CRUDE CLc1 $65.85 -2.05 % -1.38

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* S&P futures fall more than 1 pct on China share slide [ID:nHKX003241]

* China stocks fall more than 6 pct [ID:nBJD001001]

* Nikkei edges up but trade cautious; Canon, JFE gain [ID:nT258528]

* Oil falls below $67 on econ woes; US crude stocks up [ID:nSP467214]

* TREASURIES-Edge up in Asia, 5-yr auction in focus [ID:nT259079]

* Dollar drifts sideways as market awaits fresh leads [ID:nT266205]

* Gold steady a day after drop, ETF falls [ID:nT263420]

* Shanghai copper falls 2.5 pct on U.S. data [ID:nMAN456958]

COMPANY NEWS:

SANOFI-AVENTIS (SASY.PA)

Sanofi-Aventis raised its earnings growth goal for this year and said new
cost savings should result by 2013 in a net profit and sales level similar to
2008 as the French drugmaker grapples with patent expiries. For details, see:
[ID:nLT334165]
ARCELORMITTAL (ISPA.AS)

The world's largest steelmaker, forecast a gradual improvement throughout
the second half of the year after a third consecutive quarterly net loss due to
destocking. For details, see:[ID:nLT648279]

BAYER BAYG.DE

Bayer stuck to its target of limiting the slide in core underlying profit to
5 percent in 2009, a goal it had previously called into question, after
reporting better-than-expected second-quarter earnings. For details, see:
[nLR342802]

PSA PEUGEOT CITROEN (PEUP.PA)

French carmaker PSA Peugeot Citroen (PEUP.PA) swung to a first half loss
with sales down over a fifth, and said it saw a recovery in the European
automobile market starting towards the end of 2010. PSA reiterated that it
expected a recurring operating loss of between 1 and 2 billion euros for the
full year in an environment that would remain "difficult".

For details, see: [ID:nLT335798]

BHP BILLITON BHP.L

The world's third-largest iron ore miner, has agreed with some customers,
including some in China, to match the benchmark 33 price cut in annual iron ore
prices, but has yet to settle on either pricing or contract terms for nearly
half of its exports. For details, see: [ID:nSYD391613]

SAP (SAPG.DE)

The world's biggest maker of business management software raised its outlook
for 2009 operating margin but lowered its key sales target after reporting solid
results for its second quarter. For details, see: [SAPG.DE-LEN-RTRS]

AKZO NOBEL (AKZO.AS)

The Dutch chemical group reported a 12 percent fall in core second-quarter
profit, beating estimates as cost savings started to pay off, partly offsetting
lower volumes. For details, see: [ID:nLS254554]

BG GROUP (BG.L)

The British gas producer reported a 31 percent drop in second quarter net
profit, as gas and oil prices fell sharply, and said it would not meet its
production target for the year. For details, see: [ID:nLT362433]

STMICROELECTRONICS NV (STM.PA)

Europe's biggest chipmaker reported a narrower-than-expected loss, but
shares fell nearly 4 percent in after-hours trade on Wall Street on what one
analyst said was concern about costs and profit margins. [ID:nN28136809]

REPSOL YPF (REP.MC)

The Spanish firm has discovered an oilfield in Venezuela with 31 billion
barrels of reserves, El Economista reported.

SANTANDER (SAN.MC)

Spain's Banco Santander (SAN.MC) has appointed advisers to spin off its
Brazilian business in a 2.6 billion-pound ($4.3 billion) initial public offering
to create one of Brazil's largest banks, the Financial Times reported.

For a story, click on [ID:nLS023530]

CADBURY CBRY.L

The British confectionery group reported a 24 percent rise in first-half
profits and while sticking to its annual sales forecast looked for a stronger
profit margin increase for 2009. For details, see:[ID:nLS710500]

(Reporting by Blaise Robinson)