European Factors-Shares set to recover; euro zone debt eyed

LONDON, Feb 8 (Reuters) - European shares are set to break a
three-day losing streak on Monday, as U.S. stocks reversed earlier losses to end
higher in the previous session while firmer crude prices may lift heavyweight
energy stocks.

Financial spreadbetters expected Britain's FTSE 100 .FTSE to open up 14 to
35 points, or as much as 0.7 percent, Germany's DAX .GDAXI to open 20 to 27
points higher, or as much as 0.5 percent, and France's CAC 40 .FCHI to rise 11
to 30 points in the open, or as much as 0.8 percent.

The FTSEurofirst 300 .FTEU3 index of leading European shares fell 2.1
percent on Friday to notch up its biggest weekly decline in 11 months on
intensified worries about euro zone sovereign debt.

However, U.S. stocks erased a midday drop to end slightly higher on Friday,
with the S&P 500 .SPX up 0.3 percent and the Nasdaq Composite .IXIC up 0.7
percent.

"The early direction in Europe seems likely to be defined simply by traders
adjusting to that late rally in the U.S. before the weekend break," said Ben
Potter, research analyst at IG Markets.

Over the weekend, European finance ministers tried to assure their
counterparts in the Group of Seven that the euro zone's debt crisis is under
control. They said they would make sure that Greece sticks with its budget
cutting plans. [ID:nN06216480]

The comments failed to soothe investors, with the euro and growth-linked
currencies down.

In the commodity sector, oil prices reversed some of last week's losses and
rose from a seven-week low to near $72 a barrel, spurred by bargain-hunting and
hopes for a cold front in the U.S. mid-Atlantic region to boost fuel demand.

----------------------MARKET SNAPSHOT AT0 0604 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,066.19 0.29 % 3.08

NIKKEI .N225 9,951.82 -1.05 % -105.27

MSCI ASIA EX-JP .MIASJ0000PUS 438.38 -0.45 % -1.97

EUR/USD EUR= 1.3638 -0.19 % -0.0026

USD/JPY JPY= 89.35 -0.17 % -0.1500

10-YR US TSY YLD US10YT=RR 3.594 -- 0.02

10-YR BUND YLD EU10YT=RR 3.111 -- 0.00

SPOT GOLD XAU= $1,066.65 0.10 % $1.10

US CRUDE CLc1 $71.58 0.55 % 0.39

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* Wall St cuts losses, closes up with techs, materials [ID:nN05168319]

* Nikkei sinks to 2-month closing low; Kirin falls [ID:nTKW006802]

* Euro dips as eurozone fiscal woes fester [ID:nTOE61704V]

* TREASURIES-Edge down but flight to quality limits losses [ID:nTOE617015]

* Oil rises on bargain-hunting, eyes Euro debt woes [ID:nSGE61708E]

* Gold steadies near $1,065; gains capped [ID:nTOE617030]

(Reporting by Dominic Lau)