European Factors-Shares set to track Asia stocks slide

(Recasts with futures; adds details, company news; updates snapshot)

PARIS, Aug 17 (Reuters) - European equities were set to fall on Monday,
extending the previous session's retreat and tracking sharp losses in Asian
stocks after weak U.S. economic data dented investors' appetite for risky
assets.

By 0620 GMT, futures for the DJ Euro Stoxx STXEc1, for Germany's DAX
FDXc1 and for France's CAC FCEc1 were down between 0.4 percent and 0.5
percent. Earlier, financial spreadbetters had expected Britain's FTSE 100
.FTSE to open 11 to 13 points lower.

On the macro front on Monday, data showed Japan's economy returned to growth
in the second quarter, ending its longest recession since World War Two, but
analysts warned of a rocky road ahead as the nascent recovery was based on
short-term stimulus efforts around the world. [ID:nLH338906]

Shanghai stocks extended last week's selloff to drop to a seven-week low on
Monday on worries this year's rally had got ahead of the economic recovery, with
concern about new equity supplies also weighing on sentiment. [ID:nHKG129608]

Japan's Nikkei average also fell sharply, retreating from 10-month highs,
with exporters such as Kyocera (6971.T) hit as the yen rose against the dollar
on concerns about how quickly the U.S. economy will recover. [.N]

"Another weak session on Wall Street on Friday has taken its knock on effect
to the Asian markets and in turn also looking to weigh on European markets at
the open," said Matt Buckland, dealer at CMC Markets.

Shares of energy companies will feel the pinch of weakening crude oil prices
CLc1, dropping below $67 a barrel, down 1.4 percent. [O/R]

The FTSEurofirst 300 .FTEU3 index of top European shares, which is up 13
percent year-to-date, has risen 46 percent since reaching a floor in early
March. Yet it is still down 43 percent from its multiyear peak reached in
mid-2007.

----------------------MARKET SNAPSHOT AT 0623 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,004.09 -0.85 % -8.64

NIKKEI .N225 10,268.61 -3.1 % -328.72

MSCI ASIA EX-JP .MIASJ0000PUS 420.85 -2.91 % -12.62

EUR/USD EUR= 1.4132 -0.37 % -0.0052

USD/JPY JPY= 94.53 -0.26 % -0.2500

10-YR US TSY YLD US10YT=RR 3.520 -- -0.05

10-YR BUND YLD EU10YT=RR 3.310 -- -0.02

SPOT GOLD XAU= $941.90 -0.42 % -$3.95

US CRUDE CLc1 $66.57 -1.39 % -0.94

-----------------------------------------------------------------------

* Wall St snaps 4-week winning streak as data weighs [ID:nN14316042]

* GLOBAL MARKETS-Asian stocks fall on recovery doubts [ID:nSP436399]

* Nikkei hits 2-wk closing low after as-expected GDP [ID:nTKW006544]

* Yen up as investors book profits on recovery trades [ID:nT277747]

* Oil extends decline below $67 on gloomy econ data [ID:nSYD429892]

* Gold extends losses, sinks towards $940 [ID:nT315474]

* Shanghai copper and zinc fall on LME correction [ID:nSP434827]

COMPANY NEWS:

MINING SECTOR

Upstart Australian miner Fortescue Metals Group (FMG.AX) broke ranks with
bigger rivals to agree a slightly cheaper iron ore price with Chinese steel
mills in exchange for up to $6 billion in funding, giving Beijing's beleaguered
industry group a much-needed win.

But analysts said it was unlikely that the surprise deal to sell ore to
China at 35 percent less than last year's price, touted as the new "reference"
for price negotiations with the top three suppliers, would coax compromise from
big miners who have stuck to the earlier-agreed 33 percent cut benchmark. For
details, see: [ID:nSP480759]

RIO TINTO (RIO.L)

Australian packaging group Amcor Ltd (AMC.AX) is set to buy Rio Tinto's
Alcan packaging unit for $2 billion and may sell shares to partly finance the
deal, Australian media reported on Monday. For details, see: [nSIN430700]

UBS (UBSN.VX)

The deal initialled last week between the United States and Switzerland over
UBS will involve the disclosure of around 5,000 holders of secret Swiss
accounts, weekly newspaper NZZ am Sonntag said on Sunday. For related news,
click on [UBSN.VX-LEN-RTRS]

H&M (HMb.ST)

Swedish fashion chain Hennes & Mauritz reported a bigger-than-expected 3
percent drop in year-on-year sales at established stores in July. The mean
forecast in a Reuters poll of 10 analysts had been for like-for-like sales to
drop 1 percent. Total sales were up 7 percent, undershooting a forecast 9
percent rise. For details, see:[ID:nSAT006428]

SWEDBANK (SWEDa.ST)

Sweden's Swedbank unveiled a fully underwritten 15 billion Swedish crown
($2.1 billion) rights issue on Monday to bolster a balance sheet hit hard by the
economic downturn. For details, see: [ID:nLH352739]

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

Qatar Holding LLC said late Friday it would invest a total of more than 7
billion euros in buying a 10 percent stake in Porsche SE and cash-settled
options in Volkswagen as well as a contribution to Porsche's syndicated loan
facility. For details, see:[ID:nLE646922]

THYSSENKRUPP (TKAG.DE)

ThyssenKrupp is in talks to sell parts or all of its Blohm + Voss shipyard
to investor Hamdan Bin Sajid Al Nahajan from Abu Dhabi, German magazine Der
Spiegel reported, without saying where it obtained the information.

German magazine WirtschaftsWoche had reported on Thursday, also without
citing anyone, that the company no longer plans to sell the shipyard. Related
news For details, see:[TKAG.DE-LEN-RTRS]

DEUTSCHE POST (DPWGn.DE)

Deutsche Post reiterated it plans to close all of its 475 own retail
branches by the end of 2011 and use partners to sell its products to
end-customers, German paper Hamburger Abendblatt reported, citing a spokesman
for Deutsche Post. Related news: [DPWGn.DE-LEN-RTRS]

BNP PARIBAS (BNPP.PA)

Le Monde newspaper reported over the weekend that French bank BNP Paribas
would slash bonuses for its top 10 earners this year. Le Monde said the bank
planned to put aside between 15 million to 16 million euros ($21.4 million to
$22.84 million) this year for its top performers, meaning each will receive on
average 1.5 million to 1.6 million. For related news, see: [BNP.PA-LEN-RTRS]

EDF (EDF.PA)

Sunday Times reported that consortia were willing to bid around 4 billion
pounds for EDF's electricity distribution network in the UK. For related news,
click on [EDF.PA-LEN-RTRS]

SOCIETE GENERALE (SOGN.PA), BARCLAYS (BARC.L)

Barclays and Societe Generale have received investment banking licences for
Saudi Arabia, the Financial Times reported on Monday, quoting the Saudi markets
regulator. For story, click on [ID:nLH555776]

SANOFI AVENTIS (SASY.PA)

Sanofi-Aventis' recently-approved heart drug could play a role in reducing
Canada's burgeoning health-care costs, the head of the company's Canadian
operations said in an interview on Friday. For story, click on [ID:nN14393318].
(Reporting by Blaise Robinson; Editing by Dan Lalor)