European Factors to Watch-Shares to gain; focus on data, Spain

LONDON, May 29 (Reuters) - European shares are set to rise on Tuesday on
expectations U.S. home price and consumer confidence data will signal the
world's top economy is coming back on track, though soaring Spanish sovereign
debt costs will limit gains.
Financial spreadbetters expected Britain's FTSE 100
to open 9 to 13 points higher, or as much as 0.2 percent, Germany's DAX
to gain 31 to 34 points, or as much as 0.5 percent, and France's CAC-40
to rise 9 to 10 points, or as much as 0.3 percent.
Investors will keep an eye on the S&P Case/Shiller Home
Price Index for March, with a survey suggesting the 20-city seasonally adjusted
index to rise 0.3 percent from a 0.2 percent increase in February. The U.S.
consumer confidence index is expected to rise to 70 in May, against 69.2 in
April.
But the main market focus will be on euro zone debt, with Spanish 10-year
bond yields rising to 6.53 percent on Monday, their highest since
November 2011. A level exceeding 7 percent is widely seen as unsustainable and
could force Spain to seek an international bailout, as did Greece, Ireland and
Portugal.
"Equities are likely to be stuck on the 'risk on/risk off' merry-go-round
until we get some more stability and clarity around the goings-on in Europe,"
Cameron Peacock, analyst at IG Markets, said.
"The main game is the macro European outlook - namely Greek elections and
Spanish banks."
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MARKET SNAPSHOT AT 0536 GMT
LAST PCT CHG NET CHG
NIKKEI 8,645.30 0.61 % 52.15
MSCI ASIA EX-JP 1.39 % 6.50
EUR/USD 1.2536 -0.03 % -0.0004
USD/JPY 79.51 0.06 % 0.0500
10-YR BUND YLD 1.366 -- 0.01
SPOT GOLD $1,575.29 0.16 % $2.51
US CRUDE $91.40 0.59 % 0.54

* Shares edge up, Spanish debt costs curb risk appetite
* Nikkei dips as Spanish risk premium jumps
* Euro wobbles near 2-yr low, focus shifts to Spain
* Brent crude hovers at $107, Spain debt woes weigh
* Gold inches down as Spain crisis weighs on euro
* Copper slips, Spain debts weigh