(Adds company news, futures; updates snapshot table)
LONDON, Nov 1 (Reuters) - European shares are set to rise on Monday, mirroring gains in Asian equities, on surprisingly strong manufacturing data from China, although investors are seen cautious ahead of the U.S. Federal Reserve's policy meeting this week.
Futures for the STOXX Europe 50, for Germany's DAX and for France's CAC rose 0.7 to 0.9 percent. Financial spreadbetters earlier expected Britain's FTSE 100 to open as much as 0.6 percent higher.
"Despite Friday's uninspiring finish on Wall Street, Asian markets have found some support off the back of upbeat Chinese manufacturing data ... This is paving the way for a notably stronger start in Europe," said Ben Potter, research analyst at IG Markets.
"But there are a number of factors emerging out of Washington in the coming days that have the potential to unsettle sentiment -- The Fed's QE2 package is tipped to be edging closer, Friday's nonfarm payrolls could well disappoint and there's the potentially disruptive outcome of U.S. mid-term election results to contend with as well."
Sentiment improved after figures showed that China's factories ramped up their production last month and were buoyed by an influx of new business, highlighting the strength of the world's second-largest economy but also pointing to price pressures. [ID:nTOE6A001P]
The MSCI Asia share index outside Japanjumped 1.8 percent.
Investors awaited a raft of U.S. economic data later in the day, including personal income and spending numbers for September at 1230 GMT, construction spending for September at 1400 GMT and the Institute for Supply Management's October manufacturing index at 1400 GMT, for near-term market direction.
In Europe, Portugal's minority Socialist government and opposition Social Democrats (PSD) have reached an agreement on the 2011 budget, the finance ministry said on Saturday. The agreement comes after weeks of escalating fears that Portugal would fail to enact an austere 2011 budget and spark a political crisis in one of the euro zone's weakest members. [ID:nLDE69T02Y]
Commodity shares will be in focus as the U.S. dollarfell against a basket of currencies due to entrenched speculation the Fed could launch another round of U.S. bond purchases. A weaker dollar makes commodities cheaper for holders of other currencies and generally boosts demand for metals and oils.
On Friday, the FTSEurofirst 300index of top European shares closed 0.1 percent higher at 1,086.61 points, up 2.4 percent for the month.
The Dow Jones industrial averageadded 4.54 points, or 0.04 percent, to 11,118.49 on Friday. The Standard & Poor's 500 Index shed just 0.52 of a point, or 0.04 percent, to 1,183.26. The Nasdaq Composite Index edged up just 0.04 point, or 0.00 percent, to 2,507.41.
----------------------MARKET SNAPSHOT AT 0732 GMT----------------------
LAST PCT CHG NET CHG
S&P 5001,183.26 -0.04 % -0.52
NIKKEI9,154.72 -0.52 % -47.73
MSCI ASIA EX-JP556.80 1.91 % 10.43
EUR/USD1.3968 0.04 % 0.0006
USD/JPY80.51 0.29 % 0.2300
10-YR US TSY YLD2.627 -- 0.02
10-YR BUND YLD2.524 -- 0.02
SPOT GOLD$1,361.26 0.31 % $4.21
US CRUDE$81.71 0.34 % 0.28
* GLOBAL MARKETS-Asian shares up on China PMI [ID:nSGE6A0034]
* US STOCKS-Solid October ends flat ahead of Fed, elections [ID:nN29241403]
* Nikkei hits 7-wk low in choppy trade; yen, Fed eyed [ID:nTOE6A002W]
* TREASURIES-Dip in Asia, on back foot ahead of key events [ID:nTOE6A002J]
* Dlr/yen jump short-lived after suspected miss-hit [ID:nTOE6A0025]
* Gold rises to 2-week high on dollar; silver soars [ID:nSGE6A004J]
* Copper rallies; dollar eases before Fed [ID:nSGE6A0044]
* Oil rises on weaker dollar, expectations for Fed stimulus [ID:nSGE6A003B]
The miner needs to clear three hurdles over the next week before it will be free to raise its $39 billion bid for Potash Corp, as widely expected.
The UK's Sunday Times, citing sources close to the situation, reported that BHP plans to sweeten its offer by 10 percent. [ID:nSGE6A000E]
A perrson familiar with the situation however said BHP was focused on clearing regulatory hurdles, including winning approval from the Canadian government, before it does anything else.
Europe's biggest low-cost airline Ryanair reported a 17 percent increase in first half net profit on Monday and upgraded its full-year earnings guidance, as expected, on the back of better winter yields. [ID:nLDE6A0035]
New stroke prevention drug Xarelto, developed by Bayer and Johnson & Johnson, proved a safe alternative to the standard treatment in a late-stage study, lifting Bayer's chances of entering a $12 billion plus market. [ID:nLDE69U0KF]
British energy corporation BG Group said on Sunday it had given final approval to a $15 billion project to develop a major new liquefied natural gas project in northeastern Australia. [ID:nSGE69U029]
VOLKSWAGEN, PORSCHE SE
There is a 30 percent chance investors holding preferred shares in Porsche SE may not be able to swap their stock for equity in cash-rich Volkswagen, the companies' top manager said in comments published in weekly Automobilwoche. [ID:nLDE69T03T]
The Food and Drug Administration has approved Novartis AG's Afinitor to treat benign brain tumors, Novartis said on Friday. For related news, click on [NOVN.VX]
Oracle Corpfailed in its attempt to delay the start of a high-profile trade secrets case against SAP, and SAP was unsuccessful in its bid for a gag order during the trial, according to a court filing made public on Friday. [ID:nN29132601]
Germany's Wirtschafts Woche reports that management is considering whether to find another Chinese partner after ties with Beijing Automotive (BAIC) have deteriorated since the two fought over the amount of local development and production. Related news [DAIGn.DE-E]
Spanish builder ACSwould be willing to guarantee in writing the independence of Hochtief and its Australian unit Leighton as part of a takeover, the chairman and chief executive of ACS said in an interview with Welt am Sonntag. [ID:nLDE69T05M]
The lender aims to attract 100,000 net new retail customers in the fourth quarter, management board member Achim Kassow told German weekly Welt am Sonntag. Related news [CBKG.DE-E]
Demand from retail investors for shares in the initial public offering of its Enel Green Power renewable energy unit was 70 percent of the total, Enel said in a statement on Saturday. The company confirmed the IPO will be priced at 1.6 euro a share, the bottom end of the range, as the offer was 126 percent subscribed. [ID:nWEA5822]
Stockmarkets are open, but trading could be subdued due to All Saints day national holiday.
Spanish telecoms giant Telefonica has no plans for further acquisitions after the Vivostake hike and has no plans to sell shares in Vivo to finance expansion in Brazil, chairman Cesar Alierta said in an interview with the Wall Street Jounal. Alierta also said he sees further consolidation in the European telecoms sector, but Telefonica will be a spectator not a player.
(Reporting by Atul Prakash)
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