European Factors -- Shares set to fall in heavy earnings day

(Adds company items, futures; updates snapshot)

PARIS, April 29 (Reuters) - European stocks were set for a breather on
Tuesday after reaching 2-month highs in the previous session, as investors pored
over corporate results and braced for a U.S. rate decision due on Wednesday.

By 0648 GMT June Stoxx50 futures STXEM8 were down 0.5 percent, June DAX
futures FDXM8 were down 0.5 percent and CAC-40 May futures FCEc1 were down
0.4 percent.

Financials will be in focus after Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) posted its first
quarterly loss in five years and said it made further writedowns of 2.7 billion
euros.

A raft of corporate earnings from firms such as BP (BP.L: Quote, Profile, Research, Stock Buzz), Royal Dutch Shell
(RDSa.L: Quote, Profile, Research, Stock Buzz), BMW (BMWG.DE: Quote, Profile, Research, Stock Buzz), Daimler (DAIGn.DE: Quote, Profile, Research, Stock Buzz), Metro (MEOG.DE: Quote, Profile, Research, Stock Buzz) and Banco Santander
(SAN.MC: Quote, Profile, Research, Stock Buzz) will also be in the spotlight on Tuesday.

Bearish remarks by influential investor Warren Buffett, who said the U.S.
economy could face a long and deep recession, may weigh on the market. Buffett's
comments pushed U.S. stocks off their highs to close almost flat on Monday.

"We are expecting a cautious week in Europe and the US with investors
looking to the central banks for guidance. The Fed's policy meetings look like
they will have investors on edge, and as for the euro zone, continued concerns
on inflation and consumer confidence still remain," Oliver Stevens, head of
dealing at IG Markets, wrote in a note.

----------------------MARKET SNAPSHOT AT 0639 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,396.37 -0.11 % -1.47

MSCI ASIA EX-JP .MIASJ0000PUS 572.35 -0.37 % -2.11

EUR/USD <EUR=> 1.5602 -0.30 % -0.0047

USD/JPY <JPY=> 104.26 0.07 % 0.0700

10-YR US TSY YLD <US10YT=RR> 3.831 -- 0.00

10-YR BUND YLD <EU10YT=RR> 4.188 -- -0.02

SPOT GOLD <XAU=> $889.30 -0.36 % -$3.20

BRENT CRUDE LCOc1 $116.00 -0.57 % -$0.7

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* U.S. stocks near flat as M&A, economy weighed [ID:nN28129]

* Asian stocks ease with all eyes on the Fed [ID:nSP206357]

* Oil falls towards $118 from record-peak, eyes on Fed [ID:nL29552898]

* Gold dips ahead of Fed meeting; investors shy away [ID:nSP164097]

* Dollar drifting, awaiting US rate clarity [ID:nSYD245561]

* Bonds gain as traders see modest Fed rate cut [ID:nL29476283]

COMPANY NEWS:

DEUTSCHE BANK (DBKGn.DE: Quote, Profile, Research, Stock Buzz)

Deutsche Bank reported its first quarterly loss in five years as the cost of
the global financial crisis mounted for the bank. Deutsche said that it made
further writedowns of 2.7 billion euros during the period. [ID:nL28449038]

HBOS (HBOS.L: Quote, Profile, Research, Stock Buzz)

Britain's biggest mortgage lender unveiled a 4 billion pound ($7.9 billion)
rights issue to rebuild its capital base after a hefty hit on the valuation of
risky assets. HBOS will offer two new shares for every five at 275 pence per
share, a 45 percent discount to Monday's close of 495.75p, it said on Tuesday.
[ID:nWLB0652]

ROYAL DUTCH SHELL (RDSa.L: Quote, Profile, Research, Stock Buzz)

Royal Dutch Shell Plc beat forecasts on Tuesday with a 12 percent rise in
its first quarter current cost of supply net income, helped by record oil prices.

For details, see: [ID:nWLB0635]

BP (BP.L: Quote, Profile, Research, Stock Buzz)

British oil major BP Plc beat forecasts with a 48 percent leap in
first-quarter replacement cost (RC) net income, helped by record oil prices.

For details, see: [ID:nWLB0646]

SANTANDER (SAN.MC: Quote, Profile, Research, Stock Buzz)

Spain's largest bank posted first-quarter net profit of 2.206 billion euros
($3.46 billion) on Tuesday, up 22.4 percent and just ahead of forecasts.

For details, see [ID:nMDT005141]

METRO AG (MEOG.DE: Quote, Profile, Research, Stock Buzz)

Metro AG's first-quarter operating earnings rose about 14 percent and its
Real hypermarkets saw the biggest same-store sales increase among all four
units, thanks to higher prices and an ongoing revamp.

For details, see: [ID:nWEB3221]

TELENOR (TEL.OL: Quote, Profile, Research, Stock Buzz) TELIASONERA (TLSN.ST: Quote, Profile, Research, Stock Buzz)

Norwegian telecoms operator Telenor (TEL.OL: Quote, Profile, Research, Stock Buzz) has hired Nordea (NDA.ST: Quote, Profile, Research, Stock Buzz) and
JP Morgan (JPM.N: Quote, Profile, Research, Stock Buzz) to analyse a possible merger deal with rival TeliaSonera
(TLSN.ST: Quote, Profile, Research, Stock Buzz), Swedish newspaper Svenska Dagbladet reported on Tuesday, citing
sources. For details, see: [ID:nL29600270]

ALLIANZ (ALVG.DE: Quote, Profile, Research, Stock Buzz)

Europe's biggest insurer Allianz (ALVG.DE: Quote, Profile, Research, Stock Buzz) unveiled writedowns from the
global financial crisis of 900 million euros ($1.4 billion) in the first quarter
and said the crisis could endanger its medium-term goals.

For details, see: [ID:nL29294524]

BMW (BMWG.DE: Quote, Profile, Research, Stock Buzz)

BMW said first-quarter group pretax profit was 641 million euros. The firm
said it sees pretax profit rising in 2008 excluding one-off gain from Rolls
Royce (RR.L: Quote, Profile, Research, Stock Buzz) in 2007.

BRITISH AIRWAYS (BAY.L: Quote, Profile, Research, Stock Buzz)

The Independent said British Airways will issue its second profit warning of
the year next month due to the record oil price that has already sent several
carriers into bankruptcy and forced other s to raise fares to deal with the
unprecedented rise in costs, citing analysts.

CIBA (CIBN.VX: Quote, Profile, Research, Stock Buzz)

First-quarter net profit at Swiss specialty chemicals company Ciba Holding
AG (CIBN.VX: Quote, Profile, Research, Stock Buzz) halved to 37 million Swiss francs ($35.85 million) due to high raw
material costs and the strong franc, missing forecasts.

For related news, click on [CIBN.VX-RTRS-LEN]

PUBLICIS (PUBP.PA: Quote, Profile, Research, Stock Buzz)

French advertising company Publicis Groupe posted a 5.4 percent rise in
first-quarter underlying revenues and said its weak health communications
business woul
d return to growth before the end of the year. For details, see [nL29148527]

ANGLO AMERICAN (AAL.L: Quote, Profile, Research, Stock Buzz)

Mining group Anglo American Plc posted a 9.1 percent rise in first-quarter
copper output on Tuesday but refined platinum output slid by 24 percent. For
details, see: [ID:nWLB0645]

STMICROELECTRONICS (STM.PA: Quote, Profile, Research, Stock Buzz)

STMicroelectronics posted a quarterly loss on Monday because of charges
related to the spin-off of a business unit and a weak dollar.

For story click on [ID:N28193333]

(Reporting by Blaise Robinson)