European Factors to Watch-Shares seen higher, focus on U.S. jobs
LONDON, June 7 (Reuters) - European shares were set to open higher on Friday, with a late recovery on Wall Street on the previous day seen prompting some investors to buy beaten-down stocks, although trading is likely to be choppy ahead of U.S. jobs data. Economists expect the non-farm payrolls report, due at 1230 GMT, to show job growth of 170,000 in May, against 165,000 in April. The unemployment rate is seen steady at an almost 4-1/2-year low of 7.5 percent. "A number in line will probably support stocks ... A strong print would probably see equities under pressure. However, we are in a world which is transitioning from stimulus-led gains back to a fundamental-based focus, and this will be a bumpy and sometimes illogical ride," Chris Weston, chief market strategist at IG markets, said. At 0637 GMT, futures for Euro STOXX 50, Germany's DAX and France's CAC were flat to 0.2 percent higher. Investors stayed nervous ahead of the data, especially after Wednesday's figures showing U.S. private employers added 135,000 jobs in May, against expectations of a gain of 165,000 jobs. "For the next couple of weeks, expect a lot of nervousness and volatility," Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels, said. "If the jobs report comes in strong, investors would worry about the tapering of the quantitative easing. But if the numbers are weaker than expectations, the market would worry about a slow economic recovery." Asian shares failed to capitalise on the overnight rally on Wall Street as investors sought to square positions before the payrolls data. U.S. shares closed 0.5 to 0.9 percent higher on Thursday after falling in early session. The FTSEurofirst 300 index fell 1.2 percent to a six-week low, while The euro zone's blue chip Euro STOXX 50 index dropped 1.2 percent to 2,676.21. Charts showed that the Euro STOXX 50 was likely to find support at around 2,660, its 61.8 percent Fibonacci retracement of a rise from mid-April to Late May. It would face resistance at its 50-day moving average of 2,711 and further at the 38.2 percent retracement of 2,733 points. ---------------------------------------------------------------------------- MARKET SNAPSHOT AT 0630 GMT: LAST PCT CHG NET CHG S&P 500 1,622.56 0.85 % 13.66 NIKKEI 12,877.53 -0.21 % -26.49 MSCI ASIA EX-JP 528.29 -0.78 % -4.15 EUR/USD 1.3249 0.03 % 0.0004 USD/JPY 96.40 -0.56 % -0.5400 10-YR US TSY YLD 2.052 -- -0.03 10-YR BUND YLD 1.515 -- -0.02 SPOT GOLD $1,413.40 0.02 % $0.25 US CRUDE $94.89 0.14 % 0.13 > Nikkei slumps as yen firms, Asian shares ease before US jobs > Wall St ends up in volatile trade ahead of jobs data > Nikkei sinks into bear market territory; JGBs gain > Prices rise slightly with focus on U.S. payrolls > Dollar tumbles to 2-month low vs yen before U.S. jobs data > Gold heads for 3rd weekly gain; US jobs data eyed > Copper rises on hopes poor U.S. jobs will prolong bond buying COMPANY NEWS DAIMLER The German carmaker is considering starting production of one of its new Mercedes-Benz cars in Mexico, including the A-Class model, most likely in ally Nissan's local plant. EADS Europe's Airbus could increase narrowbody aircraft production once a revamped version of its A320 medium-haul jet enters service in late 2015, a senior executive said. VOLKSWAGEN The automobile maker has written to Australian car owners offering free inspections of VW vehicles in response to growing worries about potential gearbox problems that have already triggered recalls in China and Japan. RWE The company will receive a compensation payment in the high hundreds of millions of euros from Gazprom as part of a dispute over gas price contracts, Handelsblatt reported, citing no sources. CREDIT SUISSE Credit Suisse may sell part of its private bank in Germany to improve profitability in Europe, a source close to the bank said on Thursday. For more, click on: MAN SE Shareholders approved with a near 99 percent majority a domination agreement that would transfer all profits and losses to majority owner Volkswagen. MAN investors can now either tender their shares for 80.89 euros each or accept annual compensation of 3.07 euros per share in place of a dividend. ARCELOR MITTAL The world's largest steelmaker will resume its expansion of long steel capacity in Brazil with an investment of 352 million reais ($165 million) beginning in June, the head of its Americas unit said.
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