LONDON, March 20 European shares were set to bounce back after three days of losses on Wednesday on bargain hunting and the European Central Bank' assurance to provide liquidity to Cyprus, although gains were likely to be capped by concerns about the contagion effect. Cyprus's parliament overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout late on Tuesday. The vote, a setback for the 17-nation currency bloc, brought the Mediterranean island to the brink of financial meltdown. The European Central Bank, which had earlier threatened Cyprus to end emergency lending assistance for teetering Cypriot banks, said after the vote it remained committed to providing liquidity within certain limits. Analysts said the market expect policymakers to eventually resolve the crisis. "I think that they will find a solution, although painful, because the market is increasing the pressure, as usual," FXCM analysts Nicolas Cheron said. "But in the meantime, the uncertainty means the bias is negative. As long as we don't have a solution, there won't be a serious rebound." At 0741 GMT, futures for Euro STOXX 50, Germany's DAX and France's CAC were 0.5 to 0.7 percent higher, a day after the pan-European FTSEurofirst 300 closed down 0.4 percent and the Euro STOXX 50 index of euro zone blue chips fell 1.1 percent. Banking stocks will be in focus as European Union lawmakers are expected to agree on Wednesday to bar bankers in Europe from getting bonuses bigger than their salary, introducing the first cap of its kind globally. Investors will also keep a close eye on the British government's budget, with the attention focused on whether finance minister George Osborne chooses to change the remit of the Bank of England in order to provide further stimulus to the economy. The outcome of the Federal Reserve's two-day policy meeting, due to end later on Wednesday, will also be in focus. Analysts expect the Fed to keep buying $85 billion a month in mortgage and Treasury bonds to encourage investment and bolster a weak economic recovery. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0749 GMT LAST PCT CHG NET CHG S&P 500 1,548.34 -0.24 % -3.76 MSCI ASIA EX-JP 537.30 0.1 % 0.56 EUR/USD 1.2905 0.19 % 0.0024 USD/JPY 95.32 0.2 % 0.1900 10-YR US TSY YLD 1.920 -- 0.02 10-YR BUND YLD 1.360 -- 0.01 SPOT GOLD $1,612.30 -0.03 % -$0.49 US CRUDE $92.55 0.42 % 0.39 * Cyprus jitters keep euro, Asian stocks subdued * S&P 500 ends down, but off day's low after Cyprus vote * Euro steady near 4-month low on jitters over Cyprus * Gold holds near 3-week high on Cyprus crisis * London copper comes off 7-month lows * Prices rise as Cyprus problems spur contagion fears COMPANY NEWS DEUTSCHE BANK The bank said mortgage-related lawsuits and regulatory investigations have forced it to revise downwards its 2012 earnings. ž ELECTROLUX Shipment volumes of the six biggest categories of white goods in the United States rose 8.0 percent year-on-year in February, figures from the Association of Home Appliance Manufacturers showed, indicating strengthening demand in the hard-hit U.S. housing market. NOKIA A German court ruled in favour of Nokia on Tuesday, saying some devices made by Taiwan's HTC infringed on its power-saving patent. EDF EDF won planning approval from Britain's energy secretary on Tuesday to build the country's first new nuclear station in almost 20 years. ROCHE Roche Holding AG and a buyout group comprising KKR & Co LP and Hellman & Friedman LLC have joined the bidding for Life Technologies Corp , a genetic testing company coveted for its advanced diagnostics and steady cash flow, according to people familiar with the matter. VOLKSWAGEN Volkswagen, which sells more cars in China than any other foreign firm, will recall 384,181 vehicles there to fix a long-standing gearbox problem, China's quality watchdog said on Wednesday.