European Factors-Shares seen up on renewed recovery hopes

LONDON, Oct 6 (Reuters) - European shares are set to open higher on Tuesday,
extending the previous session's gains after data showed the U.S. services
sector expanded for the first time since August 2008, renewing hopes for
economic recovery.

Financial spreadbetters expected Britain's FTSE 100 .FTSE to open up 13 to
21 points, or as much as 0.4 percent, Germany's DAX .GDAXI to open 20 to 33
points higher, or as much as 0.6 percent, and France's CAC 40 .FCHI to rise 15
to 21 points in the open, or as much as 0.6 percent.

The dollar fell after UK newspaper the Independent said Gulf Arab states
were in secret talks with Russia, China, Japan and France to replace the U.S.
dollar with a basket of currencies in the trading of oil.

The weak dollar helped support metal prices.

Meanwhile, New York Federal Reserve President William Dudley said on Monday
that a tepid economic recovery should allow the Fed to keep interest rates at
rock-bottom lows for a prolonged period. [ID:nN05394214]

Australia's central bank, however, raised its key cash rate by 25 basis
points to 3.25 percent on Tuesday, saying it was prudent to gradually take back
policy accommodation now that the worst danger for the economy had passed
[ID:nSYD520296]. The move sent the Australian dollar higher against the dollar
and the yen.

The FTSEurofirst 300 .FTEU3 of top European shares ended 0.8 percent
higher on Monday, after hitting a four-week closing low on Friday.

----------------------MARKET SNAPSHOT AT 0501 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,040.46 1.49 % 15.25

NIKKEI .N225 9,666.92 -0.08 % -7.57

MSCI ASIA EX-JP .MIASJ0000PUS 450.73 0.92 % 4.13

EUR/USD EUR= 1.4713 0.45 % 0.0066

USD/JPY JPY= 89.12 -0.46 % -0.4100

10-YR US TSY YLD US10YT=RR 3.230 -- 0.01

10-YR BUND YLD EU10YT=RR 3.137 -- 0.01

SPOT GOLD XAU= $1,019.05 0.24 % $2.40

US CRUDE CLc1 $70.55 0.20 % 0.14

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* Wall St rises on services data, earnings optimism [ID:nN05386954]

* Nikkei flat as banks gain but yen worry weighs [ID:nT34100]

* Dollar skids on Gulf oil report, Asia shares up [ID:nL6172292]

* Oil flat at $70, eyes U.S. stocks, dollar switch talk [ID:nSYD484069]

* Dlr falls on report of ending its use in oil trade [ID:nT190009]

* TREASURIES-Drift sideways in Asia ahead of auctions [ID:nT189705]

* PRECIOUS-Gold inches up towards $1,020 on weak dollar [ID:nT9346]

(Reporting by Dominic Lau; Editing by Greg Mahlich)