Europe Factors to Watch-Stocks seen inching up ahead of Spain auction

PARIS, June 19 (Reuters) - European stocks were set to inch higher on
Tuesday following the previous roller-coaster session, although gains were seen
limited ahead of Spain's short-term debt auction.
Financial spreadbetters expected Britain's FTSE 100 to open 11 to 17
points higher, or as much as 0.3 percent, Germany's DAX to open 3 to 7
points higher, or as much as 0.1 percent, and France's CAC-40 to open 7
to 8 points higher, or as much as 0.3 percent.
Jittery investors were bracing for key debt auctions by Spain on Tuesday and
Thursday, at which the country is seen paying record high rates.
Spain's Treasury will issue between 2 billion and 3 billion euros ($2.52
billion-$3.79 billion) of 12- and 18-month debt on Tuesday, and between 1
billion and 2 billion euros of bonds due in 2014, 2015 and 2017 on Thursday.

The yield on Spanish 10-year bonds hit a fresh high of above 7 percent on
Monday, a key threshold above which borrowing costs become too expensive for a
country to afford over the long term. Such levels have previously led to
bailouts in Greece, Ireland and Portugal.
The euro zone's blue chip Euro STOXX 50 index ended 1.2 percent
lower on Monday, with Italy's FTSE MIB losing 2.9 percent and Spain's
IBEX dropping 3 percent, as renewed fears over the two countries'
borrowing costs reversed an early rally sparked by Greek election results that
lessened the likelihood of the country's imminent exit from the euro zone.

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MARKET SNAPSHOT AT 0516 GMT
LAST PCT CHG NET CHG
S&P 500 1,344.78 0.14 % 1.94
NIKKEI 8,654.12 -0.77 % -66.9
MSCI ASIA EX-JP 478.19 -0.19 % -0.92
EUR/USD 1.2608 0.26 % 0.0033
USD/JPY 78.99 -0.13 % -0.1000
10-YR US TSY YLD 1.567 -- -0.01
10-YR BUND YLD 1.420 -- 0.01
SPOT GOLD $1,628.59 0.04 % $0.65
US CRUDE $82.94 -0.4 % -0.33

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