Europe Factors-Shares seen lower on Japan, earnings woes

 (Adds futures, company news, snapshot table)
 LONDON, April 12 (Reuters) - European shares were set to fall on Tuesday,
tracking Asian markets lower after Japan raised the severity of its nuclear
crisis to the highest level, while investor concerns about the earnings season
are also likely to weigh.
 At 0621 GMT, futures for the Euro STOXX 50 (STXEc1: Quote, Profile, Research), Germany's DAX (FDXc1: Quote, Profile, Research)
and France's CAC 40 (FCEc1: Quote, Profile, Research) were down 0.8 to 1 percent.
 Investors are expected to be cautious after Japan raised the severity of its
nuclear crisis putting it on par with the 1986 Chernobyl disaster, and Japan's
Nikkei average (.N225: Quote, Profile, Research) tumbled 1.7 percent on worries about the impact of the
March 11 earthquake and tsunami on company results.
 "News of Japan's TEPCO upgrading the seriousness of radiation leaks out of
the Fukushima Nuclear plant has seen risk appetite evaporate, with all sectors
currently in the red," Ben Potter, market strategist at IG Markets, said.
 Meanwhile, a second major aftershock measuring 6.3 rocked northeast Japan on
Tuesday, swaying buildings in central Tokyo, but the operator of the crippled
Fukushima Daiichi nuclear power plant said there had not been any irregularities
with outside power following the quake.
 Elsewhere, Wall Street stocks mostly fell overnight on investor concerns of
the impact higher raw material costs as well the effects of Japan's earthquake
on the earnings season.
 Adding to the worries in the United States was news after the bell, that
Alcoa Inc (AA.N: Quote, Profile, Research) revenue missed forecasts, sending its shares down 3.6 percent
in post-market trade.
 "With the U.S. Q1 earnings season now upon us, sentiment is likely to be
driven by corporate results and whether or not they can come in ahead of
expectations," Potter said.
 Commodity stocks could also be in the spotlight after Goldman Sachs
recommended investors take profits before oil and other markets reverse.
[ID:nN11113549]
 Later in the session investors are likely to watch UK March inflation data,
with analysts forecasting it to be steady at 4.4 percent, though another
surprise rise would fuel talk of an imminent rate hike. [ID:nLDE73A17F]
 In the euro zone, German March CPI rose by 2.1 percent year-on-year, the
Federal Statistics Office said.
Meanwhile, European shares slipped on Monday, after rising for three weeks,
with construction stock Hochtief (HOTG.DE: Quote, Profile, Research) hit by a profit warning.
 
 ----------------------MARKET SNAPSHOT AT  0618 GMT----------------------  
                                       LAST        PCT CHG        NET CHG 
 S&P 500                  (.SPX: Quote, Profile, Research)   1,324.46        -0.28 %          -3.71 
 NIKKEI                  (.N225: Quote, Profile, Research)   9,555.26        -1.69 %        -164.44 
 MSCI ASIA EX-JP (.MIASJ0000PUS: Quote, Profile, Research)     577.61        -1.55 %          -9.09 
 EUR/USD                  (EUR=: Quote, Profile, Research)     1.4392        -0.26 %        -0.0038 
 USD/JPY                  (JPY=: Quote, Profile, Research)      83.92        -0.87 %        -0.7400 
 10-YR US TSY YLD    (US10YT=RR: Quote, Profile, Research)      3.556           --            -0.03 
 10-YR BUND YLD      (EU10YT=RR: Quote, Profile, Research)      3.476           --            -0.02 
 SPOT GOLD                (XAU=: Quote, Profile, Research)  $1,455.40        -0.77 %        -$11.35 
 US CRUDE                 (CLc1: Quote, Profile, Research)    $108.45        -1.34 %          -1.47 
 -------------------------------------------------------------------------
 
 * US-Markets fall on earnings caution, energy selloff       [ID:nN11111495]
 * GLOBAL -Oil slumps, Asia stocks fall in retreat from risk [ID:nL3E7FB3P9]
 * Brent, US oil drop more than $1.50 on demand view         [ID:nL3E7FC04S]
 * Gold falls below record, silver off 31-year peak          [ID:nL3E7FB03B]
 * METALS-Copper drops as Goldman view, Japan weighs         [ID:nL3E7FC04Y]
 * Yen gains sharply on profit-taking in bets against it     [ID:nL3E7FC0BS]
 
 COMPANIES
 
 NOKIA (NOK1V.HE: Quote, Profile, Research)
 The world's largest phone maker by volume is expected to unveil a refresh of
its Symbian platform and new smartphone models on Tuesday.
 Nokia's board chairman Jorma Ollila told the Financial Times that he expects
the company to lose further market share due to its decision to eventually drop
its Symbian platform and start building phones based on Microsoft's (MSFT.O: Quote, Profile, Research)
Windows system.
 
 ROYAL DUTCH SHELL (RDSa.L: Quote, Profile, Research)
 Oil giant Royal Dutch Shell plans to close the smaller of its two refineries
in Australia and turn it into a fuel terminal before mid-2013 as it can no
longer compete with Asia's mega-refineries. [ID:nL3E7FC01S]
 
 BP (BP.L: Quote, Profile, Research)
 The management of Russian joint venture TNK-BP is planning to sue BP (BP.L: Quote, Profile, Research),
claiming BP breached the joint venture's shareholder agreement, the Financial
Times said on Tuesday. [ID:nLDE73B00F]
 
 UBS (UBSN.VX: Quote, Profile, Research)
 UBS AG was ordered by Wall Street's brokerage regulator to pay nearly $11
million to settle charges it misled customers about the risks of owning Lehman
Brothers debt in the months before the U.S. investment bank went bankrupt.
 
 HSBC (HSBA.L: Quote, Profile, Research)
 An HSBC client pleaded guilty on Monday to offshore tax evasion, in a
widening U.S. government probe of banks that may help tax dodgers.
[ID:nN11109686]
 
 SANTANDER (SAN.MC: Quote, Profile, Research)
 Santander plans to put a higher cap on the bonuses of its top executives
than that requested by the Bank of Spain, Expansion reported, without naming
sources.
 
 FRENCH BANKS (CAGR.PA: Quote, Profile, Research) (CNAT.PA: Quote, Profile, Research)
 France's market regulator has fined two banks a total of 900,000 euros
($1.30 million) for passing on insider knowledge of a 1 billion-euro Danone
(DANO.PA: Quote, Profile, Research) bond issue at the height of the financial crisis. 
 
 SAVINGS BANKS
 BNP, J.P.Morgan and State Street are negotiating the acquisition of fund
managers owned by savings banks like Bankia and Caja Espana Duero, Expansion
reported, citing sources close to the talks.
 The state will likely buy up to 70 percent of troubled savings bank Caja
Mediterraneo in the short-term, ABC reported without citing sources. Spain will
then likely sell it piecemeal or clean up the balance sheet and sell it in one
block.
 
 DEUTSCHE BOERSE (DB1Gn.DE: Quote, Profile, Research)
 The heads of NYSE Euronext (NYX.N: Quote, Profile, Research) and Deutsche Boerse AG are set to meet
key NYSE shareholders this week to promote the benefits of their merger deal and
specify its expected cost savings, a source familiar with the plan said on
Monday. [ID:nWEN0901]
 
 AUTO STOCKS (BMWG.DE: Quote, Profile, Research) (DAIGn.DE: Quote, Profile, Research) (VOWG_p.DE: Quote, Profile, Research) (PSHG_p.DE: Quote, Profile, Research)
 Toyota Motor Corp (7203.T: Quote, Profile, Research) on Monday warned that the uncertain supply of
parts from Japan could threaten its output of vehicles through July, the latest
sign of trouble for the global auto industry stemming from the massive Japanese
earthquake a month ago. [ID:nN1192492] 
 
 SANOFI-AVENTIS (SASY.PA: Quote, Profile, Research)
 Sanofi-Aventis said on Tuesday that a key experimental diabetes drug had
seen significant success in a late stage trial in reducing a key measure of
blood sugar as well as glucose and body weight. [ID:nLDE73B03V]
 
 BAE SYSTEMS (BAES.L: Quote, Profile, Research)
 The British defence manufacturer has been awarded an urgent 8 million pound
order to fit Britain's fleet of Tornados with better targeting systems, the
Daily Mail said.
 
 AVIVA (AV.L: Quote, Profile, Research)
 The British insurer said, after the market close on Monday, that it intends
to reduce its majority stake in Delta Lloyd Group (DLL.AS: Quote, Profile, Research) to around 43 percent
by selling around 25 million shares in the Dutch firm, equivalent to just over
15 percent of the issued ordinary shares. [ID:nWEA3902]
 
 (Reporting by Joanne Frearson)

Europe Factors-Shares seen lower on Japan, earnings woes