Europe Factors - Shares seen down after hitting 10-mth highs

(Adds company news, updates snapshot)

LONDON, Aug 25 (Reuters) - European shares were set to open lower on
Tuesday, financial bookmakers said, after hitting their highest closing level in
more than 10 months the previous day, with Wall Street ending flat after giving
up earlier gains.

By 0731 GMT, the futures for Euro STOXX 50 STXEc1, Germany's DAX FDXc1
and France's CAC 40 FCEc1 were down about 0.8 percent. Earlier, financial
spreadbetters expected Britain's FTSE 100 .FTSE to open down 34 to 42 points,
or as much as 0.9 percent.

"It's a reversal ... because of the weak close on Wall Street yesterday,"
said Matthew Buckland, a dealer at CMC Markets.

Overnight, U.S. stocks ended the day barely changed as investors took a
break from a four-day rally that lifted major indexes to 10-month highs. Wall
Street initially charged higher, but a sharp gain in U.S. Treasury debt prices,
which drove benchmark yields lower, triggered a sell-off in stocks.

In Asia, Japan's Nikkei average .N225 was down 0.8 percent, while Chinese
stocks .SSEC sank 4.2 percent.

Investors showed little reaction to the White House saying that Federal
Reserve Chairman Ben Bernanke would be reappointed for another term at the helm
of the central bank. For more, click on [ID:nBERNANKE]

The FTSEurofirst 300 .FTEU3 index of top European shares rose for the
third straight session on Monday, up 0.9 percent.

German gross domestic product grew by 0.3 percent in the second quarter of
2009 led by a positive contribution from net trade and private consumption,
official data showed. [ID:nLO660247]

However, European Central Bank Governing Council member Yves Mersch said the
current economic recovery in the euro zone is not sustainable because it depends
on public funds and is not yet supported by private investment and new job
creation. [ID:nLAG003681]

U.S. house prices data -- Case Shiller home prices index for June at 1300
GMT and U.S. home prices for June at 1400 GMT -- and U.S. consumer confidence
will be in focus later in the day.

----------------------MARKET SNAPSHOT AT 0636 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,025.57 -0.05 % -0.56

NIKKEI .N225 10,497.36 -0.79 % -83.69

MSCI ASIA EX-JP .MIASJ0000PUS 425.14 -1.13 % -4.84

EUR/USD EUR= 1.4298 0.01 % 0.0001

USD/JPY JPY= 94.01 -0.50 % -0.4700

10-YR US TSY YLD US10YT=RR 3.464 -- -0.01

10-YR BUND YLD EU10YT=RR 3.276 -- -0.04

SPOT GOLD XAU= $945.90 0.48 % $4.50

US CRUDE CLc1 $73.72 -0.87 % -0.65

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

* Wall St ends flat, investors pause after 4-day rally [ID:nN24168196]

* Nikkei slips 0.8 pct, eyes on data and election [ID:nT57356]

* GLOBAL MARKETS-Asia shares, oil retreat in choppy trade [ID:nLP65888]

* Oil under $74 as Asia shares fall on recovery doubts [ID:nSP440367]

* Yen up as shares fall; Bernanke 2nd term no surprise [ID:nT45115]

* TREASURIES-Edge up in Asia as regional stocks fall [ID:nT51267]

* PRECIOUS-Gold inches up as dollar steadies vs euro [ID:nT274687]

COMPANY NEWS:

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

U.S. health officials are reviewing reports of liver injury in people who
took Roche Holding AG's weight loss drug Xenical or the over-the-counter version
sold by GlaxoSmithKline. [ID:nN24162493]

ROYAL BANK OF SCOTLAND (RBS.L), STANDARD CHARTERED (STAN.L)

The sale of RBS's retail and commercial assets in China has hit a stumbling
block that could derail the talks with the preferred bidder, Standard Chartered,
the Financial Times reported. [ID:nLO333876]

CAIRN ENERGY (CNE.L)

The British oil explorer said its large Indian oilfields would begin
producing oil this week but warned meeting targets for the next stages of the
development were becoming "increasingly challenging". [ID:nLO642559]

LINDT & SPRUENGLI (LISP.S) (LISN.S)

Lindt & Spruengli still sees depressed demand for its chocolates this year,
the group said after posting an 88 percent drop in first-half net profit.
[ID:nLO632257]

CRH (CRH.I) (CRH.L)

The Irish building materials group posted a sharp drop in first-half pre-tax
profit as expected and said the rate of decline would ease in the second half
due to cost-cutting and improvements in its core U.S. market. [ID:LP567569]

CENTRICA (CNA.L)

The British Gas owner has lifted its interest in Venture Production (VPC.L)
to above 50 percent, taking the utility closer to a full takeover of the oil &
gas producer. [ID:nLO502903]

NATIXIS (CNAT.PA)

The French retail bank Groupe BPCE will guarantee billions of euros of toxic
assets at its investment banking arm Natixis, meaning the government will not
have to step in, newspaper Les Echos said in a preview of its Tuesday edition.
[ID:nLO726838]

OERLIKON (OERL.VX)

The Swiss technology group said chief executive Uwe Krueger is stepping down
and it is cutting more jobs, after the company posted a first-half loss on weak
demand at its textile unit. [ID:nLP79539]

BHP BILLITON (BLT.L)

BHP Billiton, the world's biggest miner, will cut up to 70 jobs at its Mt
Keith nickel mine in Australia to ensure the operation's viability, it said on
Tuesday. [ID:nSYU007095]

LONZA (LONN.VX)

JLL Partners is not in talks to sell its majority stake in Canadian
drugmaker Patheon (PTI.TO) to Lonza, a JLL partner said on Monday, saying it was
the wrong time to cash out. [ID:nN24149147]

PUNCH TAVERNS (PUB.L)

Britain's biggest pub group said it was on track to meet its full-year
expectations, but saw little prospect of demand improving soon as recession-hit
consumers curb spending. [ID:nLP88376]

AIR BERLIN (AB1.DE)

Germany's second-biggest airline after Lufthansa said it expected revenue
per seat it sells to remain stable in the second half of the year. [ID:nLP84705]

It reported quarterly operating profit that rose 33 percent to 17.6 million
euros ($25.2 million), slightly better than expectations. [ID:nLO732568]

PERSIMMON (PSN.L)

The UK housebuilder reported a drop in first-half pretax profit but said
selling prices had stabilised and it is trading ahead of expectations in the
historically quieter summer period. [ID:nLO523989]

ITV (ITV.L)

Britain's largest free-to-air broadcaster is weeks away from signing a deal
with Hulu, U.S. video-on-demand venture, to syndicate its content in exchange
for equity in the company, the Daily Telegraph said. [ID:nLO585312]

(Reporting by Dominic Lau)