Europe Factors -- Shares set to track U.S., Asian gains

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

PARIS, Aug 20 (Reuters) - European equities were set to rise on Thursday,
rebounding from the previous session's dip and tracking gains on Wall Street and
in Asia, where Shanghai stocks bounced back from a sharp two-week sell-off.

By 0630 GMT, futures for the DJ Euro Stoxx STXEc1, for Germany's DAX
FDXc1 and for France's CAC FCEc1 were up 1.3-1.4 percent. Earlier, financial
spreadbetters expected Britain's FTSE 100 .FTSE to open up 35 to 57 points, or
as much as 1.2 percent.

Shanghai's benchmark stock index .SSEC was up 3.8 percent after state
media said the stock regulator had approved several mutual funds this week in
quiet support to the market, which has dropped 20 percent over the past two
weeks.

European oil firms could benefit from gains in crude prices. U.S. crude oil
futures CLc1 climbed above $72 a barrel on Thursday after gaining more than 4
percent the previous day, propelled by industry data showing a steep drop in
crude imports and stockpiles in the United States.

The FTSEurofirst 300 .FTEU3 index of top European shares slid 0.3 percent
on Wednesday as investors scaled back their trading positions after heavy losses
in Asia and on concerns about the pace of the global economic recovery.

Volumes remained low because of Europe's summer lull. The total volume on
the FTSEurofirst 300 on Wednesday represented around 70 percent of the index's
90-day average daily volume.

The benchmark index, which has soared 44 percent since reaching a floor in
early March, is up 12 percent year-to-date, propelled in part by
better-than-feared corporate results.

----------------------MARKET SNAPSHOT AT 0626 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 996.46 0.69 % 6.79

NIKKEI .N225 10,383.41 1.76 % 179.41

MSCI ASIA EX-JP .MIASJ0000PUS 420.29 1.59 % 6.59

EUR/USD EUR= 1.424 0.06 % 0.0008

USD/JPY JPY= 94.44 0.40 % 0.3800

10-YR US TSY YLD US10YT=RR 3.491 -- 0.04

10-YR BUND YLD EU10YT=RR 3.279 -- 0.02

SPOT GOLD XAU= $944.55 0.32 % $3.00

US CRUDE CLc1 $72.69 0.37 % 0.27

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

* Wall St gains as oil data rekindles recovery hopes [ID:nLK330853]

* Shanghai stocks claw up but investors on edge [ID:nSP514341]

* Nikkei up 1.8 pct, helped by China rebound, resources [ID:nT129633]

* Oil steady above $72 after 4 pct surge; eyes US data [ID:nSP514250]

* Yen edges lower as high-yielders back in favour [ID:nT271772]

* TREASURIES-Futures off 1-mth peak as China shares rise [ID:nT173409]

* Gold extends gains as dollar stays weak [ID:nT165557]

* Metals rebound on equity gains; wary of Shanghai stocks [ID:nSP513295]

COMPANY NEWS

RIO TINTO (RIO.L)

The world's second-largest miner reported a 54 percent drop in first-half
earnings on Thursday, its biggest half-year slump on record, as aluminium prices
and demand collapsed. The company, which has eased its debt woes with recent
asset sales and a $15.2 billion share sale, said it remained cautious about a
recent rally in metals prices.

UBS (UBSN.VX)

Shares in UBS were expected to open down more than 1 percent on Thursday
after the Swiss government said it would sell its 9 percent stake in the bank.
The stake is expected to be placed at between 16 and 16.50 Swiss francs per
share, lower than Wednesday's closing price of 16.74, traders said. For details,
see: [ID:nLK353972]

AHOLD (AHLN.AS)

The Dutch supermarket group reported second-quarter operating profit above
forecasts on Thursday, helped by cost controls even as the retail environment
continues to reflect weak economic conditions. [ID:nLK15219], [ID:nLC700189]

HOLCIM (HOLN.VX)

Cement maker Holcim said its first half net income was 527 million Swiss
francs and there was no no sign of an economic turnaround in the first half of
the year. For related news click on [HOLN.VX-LEN-RTRS]

BBVA (BBVA.MC)

Banco Bilbao Vizcaya Argentaria, Spain's second-largest bank, is expected to
win a government-run auction of troubled Texas lender Guaranty Financial Group
Inc GFG.N, sources familiar with the situation said on Wednesday. For a full
story, please click on [ID:nN19482623]

VEDANTA RESOURCES (VED.L)

Sterlite Industries (STRL.BO), a unit of Vedanta Resources, has raised its
offer for bankrupt U.S. copper miner Asarco LLC, making a bid that could pay
unsecured creditors in full and compete with the latest offer from Mexican miner
Grupo Mexico SAB de CV GMEXICO.MX, according to an Asarco lawyer. For details,
see:[ID:nN19418842]

GLAXOSMITHKLINE (GSK.L)

The U.S. Food and Drug Administration said on Wednesday it has approved
GlaxoSmithKline's Hiberix Hib vaccines as a booster dose for children ages 15
months to four years. For details, see:[ID:nWEN2622]

SANOFI-AVENTIS (SASY.PA)

Data from tests on adults show it is safe to start trying out the new H1N1
swine flu vaccine in children, U.S. officials said on Wednesday. The National
Institute of Allergy and Infectious Diseases said it would soon start two trials
of Sanofi-Aventis vaccine in children aged 6 months to 17 years old.
[ID:nN19479061]

BAYER BAYG.DE

Bayer has suffered defeat in an Indian court in a crucial legal dispute over
approval of a copycat version of its cancer drug Nexavar. For details,
see:[ID:nLJ123077]

BASF SE BASF.DE

A BASF spokesman confirmed a report in the Rheinpfalz newspaper that the
chemicals company is considering ending shortened work hours at its main plant
in Ludwigshafen by September. The chemical group has already lowered the number
of workers on reduced working hours to 300 from 600. Related news
[BASF.DE-LEN-RTRS]

(Reporting by Blaise Robinson; editing by Atul Prakash)