European Factors - Shares seen up, but recession fears persist

(Adds company items, quotes, futures, updates snapshot)

PARIS, Jan 8 (Reuters) - European equities were set to tick higher on
Tuesday following a recent drop, but the gains could be limited as investors
continue to fret about the outlook for the U.S. economy in the wake of weak jobs
data.

By 0725 GMT, DAX futures FDXc1 were up 0.2 percent, the CAC 40
futures FCEc1 up 0.3 percent and Euro STOXX futures STXEc1 up 0.1 percent.

"The market is torn between two factors: fears of a U.S. recession on both
the earnings and the macroeconomic fronts, and hopes that the Fed will cut rates
aggressively. The latter factor could underpin the market," said Franz Wenzel,
strategist at AXA Investment Managers, in Paris.

"Going forward, the market will be range bound because of these two factors."

The FTSEurofirst 300 index .FTEU3 of top European shares ended virtually
unchanged on Monday at 1,457.79 points, as gains in defensive stocks such as
telecoms and healthcare were eclipsed by a drop in more cyclical sectors, hit by
recession fears.

Europe's benchmark index has dropped 3.2 percent so far in 2008.

----------------------MARKET SNAPSHOT AT 0729 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,416.18 0.32 % 4.55

NIKKEI .N225 14,528.67 0.19 % 28.12

MSCI ASIA EX-JP .MIASJ0000PUS 606.16 0.23 % 1.40

EUR/USD EUR= 1.4723 0.22 % 0.0032

USD/JPY JPY= 109.24 0.09 % 0.1000

10-YR US TSY YLD US10YT=RR 3.863 -- 0.03

10-YR BUND YLD EU10YT=RR 4.141 -- 0.03

SPOT GOLD XAU= $864.20 0.79 % $6.80

BRENT CRUDE LCOc1 $95.10 0.59 % $0.7

-----------------------------------------------------------------------

* Dow, S&P 500 end higher on defensive share-buying [nL08451329]

* Asian shares edge higher; oil rebound [nT241099]

* Nikkei ends up 0.2 pct, first positive close in 08[nTKFOO2936]

* Oil rebounds after 3-day fall on US economy worry [nL08440100]

* Dollar steady, takes breather after last week's dip [nT204446]

* Bonds dip in Asia, yield curve flattens further [nT199113]

* Gold ticks up as oil rebounds, trend positive [nT214217]

COMPANY ITEMS:

NOVARTIS (NOVN.VX), ROCHE (ROG.VX) GLAXOSMITHKLINE (GSK.L)

U.S. health officials issued an alert on Monday to highlight the possibility
of severe bone, joint and muscle pain in patients treated with certain
osteoporosis medicines. The class of drugs, called biophosphonates, include
Novartis's Zometa, Aredia and Reclast; and Boniva from Roche and GlaxoSmithKline
(GSK.L).

For more on this, double click on: [ID:nN07409586]

EADS (EAD.PA)

The European aerospace group dismissed on Monday a report of fresh problems
with its 20 billion euro A400M military transport plane project as Germany said
it may seek compensation for any delays. For story click on: [ID:nL0740384]

ERICSSON (ERICb.ST)

Mobile phone maker Sony Ericsson (6758.T)(ERICb.ST) is giving high priority
to North America, one of its global weak spots, in 2008, the company's new
president Hideki Komiyama told Reuters on Monday. Komiyama, who took over from
Miles Flint in November, said the Japanese-Swedish joint venture was still
interested in emerging markets but would target higher income consumers there,
not the very low end of the market.

For more on this, double click on: [ID:nL08459655]

SCOTTISH & NEWCASTLE SCTN.L

Bid target Scottish & Newcastle Plc (S&N) on Tuesday said it sees
significant value and synergies from controlling its East European joint venture
Baltic Beverages Holding (BBH) which it runs with Carlsberg.

For more on this, double click on: [ID:nWLB5428]

ROYAL DUTCH SHELL (RDSa.L)

The Financial Times reported that Shell's chief executive said on Monday
that record oil and gas prices are delaying major hydrocarbons projects as
governments haggle with oil companies over taking a higher share in revenues.

Separately, the Sierra Club, the largest and oldest U.S. environmental
organization, filed a federal lawsuit on Monday against Shell Oil Co and
subsidiaries over pollution at a refining and chemical plant complex along the
Houston Ship Channel.

For more on this, double click on: [ID:nN07437166]

BARCLAYS (BARC.L)

Barclays boardroom director Bob Diamond looks set to trouser a bonus of no
less than 14.8 million pounds, with half to be paid in cash and the remainder in
shares - despite the banking giant, along with the banking industry in general,
experiencing one of its most trying years, reported the Guardian.

E.ON EONG.DE, RWE (RWEG.DE), GAZ DE FRANCE GAZ.PA SUEZ (LYOE.PA)

France and Germany should come up with their alternative by the end of this
month for injecting more competition into Europe's power markets, the European
Union's new presidency said on Monday.

For more on this, double click on: [ID:nL07298086]

CONERGY (CGYG.DE)

A unit of Conergy has teamed up with Australia's Macquarie Bank (MQG.AX) to
build a $2.2 billion wind farm on the eastern coast of Australia.

For more on this, double click on: [ID:nSYD129279]

AIR FRANCE KLM (AIRF.PA)

Air France KLM posted a 3.1 percent rise in passenger traffic in December,
led by growth on its American and Asian routes, but its passenger load factor
fell 0.8 pecentage points to 78.6 percent.

For more on this, double click on: [nPAC009074]

RYANAIR (RYA.I)

Ryanair holds a news conference on its 2008 plans for Italy. In December,
the Irish discount airline's offer to operate out of Malpensa in northern Italy
was rejected by the international airport's operator.

FIAT (FIA.MI)

The Italian industrial group said it had bought back 6.1 million ordinary
shares at an average price of 15.9438 euros including fees, bringing the total
number purchased under its buyback programme to 26.582 million at a cost of
523.3 million euros ($768.7 million).

(Reporting by Blaise Robinson; Editing by Quentin Bryar)