Europe Factors-Shares set to rise ahead of U.S. payrolls

 (Adds futures prices, details, updates snapshot table)
 LONDON, April 1 (Reuters) - European shares were set to rise on Friday, with
investors expecting an upbeat reading of a key U.S. jobs report to confirm the
improving outlook for economic recovery, putting lingering worries over the euro
zone's debt troubles on the back burner for now.
 By 0630 GMT, the 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 up 0.2 to 0.5 percent.
 The March U.S. non farm payrolls data, due at 1230 GMT, is forecast to rise
by 190,000 in second straight month of growth, with some investors expecting a
rise to above 200,000 as the report comes in the wake of recent employment data
which suggests the recovery in the crucial labour market was intact. 
 The unemployment rate is seen unchanged at 8.9 percent.
 "Expectations appear to be somewhat upbeat here although this does mean any
shortfall could see further downside pressure emerging across the board," said
Ben Potter, market strategist at IG Index.
 The FTSEurofirst 300 (.FTEU3: Quote, Profile, Research) index of top European shares closed 0.9
percent lower at 1.124.88 points on Thursday, ending the first quarter with a
gain of 0.3 percent.     
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
 For a graphic on asset performance in Q1 click on
http://r.reuters.com/wur78r
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 Equity markets were seen recouping some losses after a late session sell-off
on Thursday on jitters over the finances of Ireland's banks. After markets
closed, Ireland said its four remaining banks required an additional 24 billion
euros ($34.1 billion) to withstand potential losses from a worsening economy in
a "stress test" scenario. [ID:nLDE72T20R]
 Uncertainty over highly indebted Portugal was also expected to prompt some
caution among investors after the country missed its 2010 budget deficit goal, a
move which makes a bailout look unavoidable, while its president set a June 5
date for snap elections. [ID:nLDE72U1X6]
 Expectations of interest rate hikes in the United States is seen dictating
near-term direction, with recent comments from Federal Reserve officials
pointing to a scaling back of loose monetary policy.
 In the latest move, Minneapolis Federal Reserve President Narayana
Kocherlakota said the Fed could raise rates by the end of 2011, far sooner than
expected by financial markets, according to an interview with the Wall Street
Journal. 
 In China, factories raised production a touch in March while cost inflation
slowed, early signs that China was scoring some success in taming prices with
its gradual monetary policy tightening. [ID:nLDE73001V]
       
----------------------MARKET SNAPSHOT AT 0627 GMT----------------------  
                                  LAST        PCT CHG        NET CHG 
S&P 500                  (.SPX: Quote, Profile, Research)  1,325.83        -0.18 %          -2.43 
NIKKEI                  (.N225: Quote, Profile, Research)  9,708.39        -0.48 %         -46.71 
MSCI ASIA EX-JP (.MIASJ0000PUS: Quote, Profile, Research)    576.15         0.66 %           3.75 
EUR/USD                  (EUR=: Quote, Profile, Research)      1.4164      -0.03 %        -0.0004 
USD/JPY                  (JPY=: Quote, Profile, Research)     83.48         0.36 %         0.3000 
10-YR US TSY YLD    (US10YT=RR: Quote, Profile, Research)      3.483         --              0.02 
10-YR BUND YLD      (EU10YT=RR: Quote, Profile, Research)      3.386         --              0.02 
SPOT GOLD                (XAU=: Quote, Profile, Research) $1,433.10        -0.24 %         -$3.38 
US CRUDE                 (CLc1: Quote, Profile, Research)   $106.94         0.21 %           0.22 
-----------------------------------------------------------------------     
 * Asian shares, dollar gain as new quarter begins           [ID:nL3E7F10DM]
 * Nikkei eases after hits 2-wk high, but helped by yen, oil [ID:nL3E7F10EV]
 * Wall St ends a strong quarter optimistic on payrolls      [ID:nN31187681]
 * Brent steady above $117, investors await US jobs data     [ID:nL3E7F10GF]
 * METALS-Copper treads water ahead of US jobs data          [ID:nL3E7F10BU]
 * Gold eases before U.S. payrolls data, ETF holdings drop   [ID:nL3E7F107R]
 * TREASURIES-Gov't debt selling may be near an end for now  [ID:nN31165590]
 * Yen falls as yield disparity grows, carry trades eyed     [ID:nL3E7F102K]
 
 COMPANY NEWS:
 
 BARRY CALLEBAUT (BARN.S: Quote, Profile, Research)
 The world's largest chocolate maker expects to outpace average market growth
in the second half of its fiscal year despite the challenging situation in the
Ivory Coast. [ID:nLDE6671EL]
 
 EUROPEAN BANKS
 Banks from Europe drew tens of billions of dollars in emergency loans from
the Federal Reserve at the height of the financial crisis in 2008, with nine of
the 12 largest borrowers from the Fed's discount window on the day the Fed
lending peaked were foreign-owned firms. [ID:nN31261042]
 
 FERROVIAL (FER.MC: Quote, Profile, Research) 
 Spanish infrastructure firm, which is in the process of selling 10 percent
of UK airports operator BAA, holds its annual shareholders' meeting.
 
 SAVINGS BANKS 
 Spanish savings bank Caja Mediterraneo (CAHM.MC: Quote, Profile, Research) will seek state funds to
shore up its capital, but the move will unlikely derail a continued
restructuring of the country's banking sector. [ID:nLDE72U0BF] 
 
 PARMALAT (ISP.MI: Quote, Profile, Research)
 The board of Parmalat is called on Friday to give Italian investors more
time to stop France's Lactalis from taking control of the dairy group even
though an all-Italian consortium is yet to materialise. [ID:nLDE72U14J]
 
 PRUDENTIAL (PRU.L: Quote, Profile, Research)
 Britain's Prudential said chief executive Tidjane Thiam's 2010 bonus would
be paid in deferred shares, rather than 50 percent cash, after the insurer
racked up big costs in a failed bid for AIA last year. [ID:nLDE72U0PV]
 
 RWE (RWEG.DE: Quote, Profile, Research), E.ON (EONGn.DE: Quote, Profile, Research) 
 RWE said late on Thursday it would lodge a legal complaint against the
German state of Hesse for ordering a three-month shutdown of RWE's nuclear power
plant Biblis A as part of the federal government's moratorium on the oldest
German nuclear plants. E.ON said it would refrain from suing. [ID:nLDE72U2H4] 
 
 GDF SUEZ (GSZ.PA: Quote, Profile, Research) 
 Rising commodity prices have pushed the French government to mull a freeze
of regulated gas tariffs until the next presidential elections in 2012, French
newspaper Les Echos reported on Friday. [ID:nLDE73001T]
 Separately, GDF Suez and Acea said on Thursday they have closed their
agreement signed on Sept. 16 2010. Under this agreement, GDF Suez activities in
Italy will be managed through GDF Suez Energia Italia. [ID:nWEA2214] 
 
 XSTRATA (XTA.L: Quote, Profile, Research) 
 The miner and Chugoku Electric have settled an annual coal contract for the
Japanese fiscal year starting April 1 at a record level of around $130 per
tonne, over 30 percent higher than last year's contract, sources told Reuters on
Friday. [ID:nL3E7EV499] 
 
 LOGITECH (LOGN.VX: Quote, Profile, Research) (LOGI.O: Quote, Profile, Research) 
 Logitech, the world's largest computer mouse maker, lowered its fiscal 2011
outlook due to weakness in its Europe, Middle East and Africa retail region.
 
 FRANCE TELECOM (FTE.PA: Quote, Profile, Research) 
 France Telecom aims to continue its expansion in emerging markets of Africa
and the Middle East via two or three acquisitions a year, but will not bid for
Syria's mobile licence, an executive told Reuters. [ID:nWEA2223]
 
 (Reporting by Harpreet Bhal)

Europe Factors-Shares set to rise ahead of U.S. payrolls