European Factors to Watch - Shares seen opening slightly higher

Fri Oct 5, 2012 2:31am EDT

LONDON, Oct 5 (Reuters) - European stocks were set to open slightly higher
on Friday following slight losses during the previous session, with many
investors focused on the publication of U.S. non-farm payrolls economic data
later in the day.
    Futures for the Euro STOXX 50 index were up by 0.6 percent, while
the futures contracts on Germany's DAX and France's CAC were up
by 0.5 percent. Financial spreadbetters also expected Britain's FTSE 100 
to open up by between 17 to 20 points, or as much as 0.3 percent higher.
    Traders said persistent worries over the euro zone debt crisis, and
uncertainty over the timing of any sovereign bailout deal for Spain, could keep
European stock markets pegged within the tight 100 point trading range in which
they have been over the last few weeks.
    "I think it's going to be reasonably quiet ahead of the payrolls, but
Spanish yields are creeping up, which is slightly worrying," said Joe Rundle,
head of trading at ETX Capital.
    "The risk is on the downside," he added.    
   
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    MARKET SNAPSHOT AT 631                    
    GMT                                       
                               LAST  PCT CHG     NET
                                                 CHG
    S&P 500                  1,461.   0.72 %   10.41
                                  0           
    NIKKEI                   8,863.   0.44 %   38.71
                                  0           
    MSCI ASIA    <.MIASJ000           0.37 %    1.91
    EX-JP        PUS>                         
    EUR/USD                  1.3012  -0.04 %  -0.000
    USD/JPY                   78.38  -0.11 %  -0.090
    10-YR US     <US10YT=RR   1.665       --   -0.01
    TSY YLD                                   
    10-YR BUND   <EU10YT=RR   1.474       --    0.01
    YLD                                       
    SPOT GOLD                $1,791   0.18 %   $3.29
                                 84           
    US CRUDE                 $91.41  -0.33 %   -0.30
 
  
  
  > Asia shares gain after ECB assurances, US jobs in focus 
  > S&P 500 on verge of 5-year high day ahead of jobs data  
  > Nikkei rises to 1-week high ahead of BOJ, U.S. jobs data 
  > U.S. bond prices fall on day before key jobs data 
  > Euro steady near 2-week high, yen firms on BOJ 
  > Gold hits 11-month high, extends gains to fifth day 
  > Copper edges higher on euro, U.S. jobs data in focus 
  > Brent slips below $112 ahead of U.S. jobs data 
    
    COMPANY NEWS:
    EADS 
    EADS and BAE Systems have edged closer towards winning political
backing for a $45 billion merger amid positive signals from Britain and France,
but German misgivings over control remain a major hurdle, sources close to the
talks said. 
    
    CREDIT SUISSE 
    U.S. federal and state authorities are investigating Credit Suisse AG over
mortgage-backed securities packaged and sold by the bank, people familiar with
the probe said on Thursday. 
    Credit Suisse will lay off another 78 employees in the New York region by
year-end, its fourth round of cuts for the area this year, a regulatory filing
showed.
    
    DEUTSCHE BANK 
    Deutsche Bank has suspended a handful of employees after it was criticised
by a judge last year during a trial into tax evasion on carbon permits, a
financial source familiar with the matter said on Thursday. Deutsche Bank
declined to comment on whether any employees had been suspended. 
    
    DEUTSCHE TELEKOM 
    Sprint Nextel Corp is considering making a rival bid for MetroPCS
Communications Inc, which agreed on Wednesday to a merger with Deutsche
Telekom AG's T-Mobile USA, according to sources familiar with the situation.
 
    
    VOLKSWAGEN 
    Volkswagen has cut its internal 2012 sales target for Western Europe by up
to 140,000 vehicles, Handelsblatt said on Thursday, citing the group's works
council head. 
    
    ITALIAN BANKS
    Italy faces the risk of a credit crunch when its banks have to repay the
cheap three-year loans they took from the European Central Bank, the chairman of
the country's third-biggest lender Monte dei Paschi said on Thursday.
 
    
    ENI 
The oil and gas group will increase its oil and gas output to 2.5-3.0 million
barrels of oil equivalent per day in five-six years time from 1.8 million
boe/day today, its Chief Executive Paolo Scaroni said on Thursday.
 
    
    FIAT     
    The group is ready to relaunch talks with General Motors GM.N for the
European division of Opel should GM decide to sell it, Il Sole 24 Ore said. The
idea would be to buy it at zero cost, it said.
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