LONDON, Nov 5 (Reuters) - European shares were set to fall back on Thursday,
after Wall Street surrendered most of its earlier gains, while the Federal
Reserve stated that it would keep rates close to zero for "an extended period".
Financial spreadbetters expected Britain's FTSE 100 .FTSE to open up to 38
points lower, or as much as 0.7 percent, Germany's DAX .GDAXI to open up to 52
points lower, or as much as 1.0 percent and France's CAC .FCHI to open up to
33 points lower, or as much as 0.9 percent.
On Wednesday, the FTSEurofirst 300 .FTEU3 index of top European shares
rose 1.6 percent to close at 984.64 points, more than recouping the previous
session's losses.
The European benchmark is up more than 52 percent from its lifetime low of
March 9, as investors have seen major economies emerge from recession.
Rate decisions and statements from the Bank of England and the European
Central Bank will provide much of the day's focus.
However, it is also a busy day for earnings with BNP Paribas (BNPP.PA) and
Unilever (ULVR.L) among those reporting.
U.S. shares surrendered early gains and finished only marginally higher on
Wednesday, though the Fed's statement provided what most investors had been
looking for. It said it would keep rates close to zero for an extended period,
even amid growing evidence of recovery.
Japan's benchmark Nikkei .N225 fell 1.3 percent to a one-month closing low
on Thursday.
"The late sell off on Wall Street has the potential to weigh on European
markets as the day's trade gets underway although with ECB and BoE rate verdicts
both due - plus the accompanying UK QE announcement - the potential for further
volatility in the short term certainly cannot be overlooked," said Cameron
Peacock, market analyst at IG Markets.
-----------------------MARKET SNAPSHOT AT 0555 GMT----------------------
LAST PCT CHG NET CHG
S&P 500 .SPX 1,046.50 0.1 % 1.09
NIKKEI .N225 9,728.56 -1.18 % -115.75
MSCI ASIA EX-JP .MIASJ0000PUS 450.65 -0.88 % -4.00
EUR/USD EUR= 1.4851 -0.13 % -0.0019
USD/JPY JPY= 90.43 -0.34 % -0.3100
10-YR US TSY YLD US10YT=RR 3.509 -- -0.01
10-YR BUND YLD EU10YT=RR 3.317 -- 0.00
SPOT GOLD XAU= $1,088.10 -0.39 % -$4.25
US CRUDE CLc1 $79.80 -0.75 % -0.60
-----------------------------------------------------------------------
* US STOCKS-Wall St rally fades late after Fed [ID:nN0458750]
* TREASURIES-Supply worry dents prices [ID:nN04595088]
* Dollar pressured by Fed's pledge on low rates [ID:nSYD268937]
* GLOBAL MARKETS-Asia shares dip [ID:nHKG148885]
* Nikkei slips as exporters sold, eyes on jobs data [ID:nT23370]
* Oil dips under $80 after rising on U.S. crude draw [ID:nT445983]
* PRECIOUS-Gold eases but $1,100 still in sight [ID:nT148131]
* METALS-Shanghai copper lower despite dollar [ID:nSHA138427]
(Reporting by Brian Gorman)
