European Factors to Watch-Shares to extend gains, U.S. data eyed

Fri Dec 7, 2012 1:42am EST

LONDON, Dec 7 (Reuters) - European shares were set to extend
gains on Friday from the previous day's 18-month closing highs,
with hints of renewed efforts to avert U.S. austerity measures
improving sentiment ahead of jobs data.
    The White House and Republicans in Congress signalled on
Thursday they had resumed private talks on breaking the
stalemate over the "fiscal cliff" of scheduled tax rises and
spending cuts from January. 
    U.S. non-farm payrolls data, due at 1330 GMT, is expected to
show an addition of 93,000 jobs in November, compared with
October's gain of 171,000. The unemployment rate is seen holding
steady at 7.9 percent.
    "Any big positive surprises would naturally be bullish,"
Jonathan Sudaria, dealer at Capital Spreads, said in a note.
    "However, if the figure is a gigantic miss, this will
solidify the expectation that the Fed will expand the scope of
QE3 to include outright monthly purchases of long-term
treasuries at next week's FOMC meeting," he said, referring to
the third round of quantitative easing.
    Financial spreadbetters expected Britain's FTSE 100 
to open 12 to 16 points higher, or as much as 0.2 percent,
Germany's DAX to gain 22 to 27 points, or as much as
0.3 percent, and France's CAC 40 to rise 16 to 18
points, or as much as 0.2 percent.
    The FTSEurofirst 300 index of top European shares 
finished 0.7 percent higher at 1,131.85 points on Thursday, the
highest close since late May 2011.
    
     MARKET SNAPSHOT AT 0630 GMT                                
                                               LAST    PCT CHG    NET CHG
     S&P 500                               1,413.94     0.33 %       4.66
     NIKKEI                                9,527.39    -0.19 %     -17.77
     MSCI ASIA EX-JP                                    0.39 %       2.07
     EUR/USD                                 1.2954     -0.1 %    -0.0013
     USD/JPY                                  82.40     0.01 %     0.0100
     10-YR US TSY YLD                         1.582         --       0.00
     10-YR BUND YLD                           1.303         --       0.01
     SPOT GOLD                            $1,702.11     0.21 %      $3.49
     US CRUDE                                $86.51     0.29 %       0.25
 
    * Asia shares edge higher, focus on U.S. Jobs               
 
    * Nikkei edges up to 7-month high ahead of U.S. jobs        
 
    * Apple's gains lift tech in quiet day before jobs data     
 
    * LME copper little changed, traders eye U.S. data          
 
    * Downbeat ECB knocks wind out of euro bulls                
 
    * Gold inches up; headed for 2nd week of losses             
 
    * Brent steady above $107; heads for worst week since Oct   
 
    * U.S. 10-year yields near 3-week lows before jobs data
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