Europe Factors-Shares to edge lower; focus on US jobs data

(Adds detail, company news; updates snapshot table)

By Francesco Canepa

LONDON, Feb 3 (Reuters) - European shares were set to
edge lower on Friday from six-month highs as investors awaited
U.S. jobs data to gauge the pace of recovery in the world's
largest economy and the likelihood of fresh monetary stimulus
from the Federal Reserve.

At 0743 GMT, futures for Euro STOXX 50, Germany's
DAX and France's CAC 40 were 0.1 to 0.3 percent
lower.

A string of upbeat data from the United States, Europe's
largest export market, helped fuel gains on the FTSEurofirst 300
index of top European shares, which hit a fresh
six-month closing high on Thursday.

Friday's nonfarm payrolls report was seen as a key catalyst
for shares as strong data would fuel economic growth
expectations while a disappointing print could add pressure on
the Fed to intervene to stimulate the economy, in a move that
would support appetite for risky assets such as equities.

"A weak read will probably be interpreted as an indication
that QE3 (a third round of quantitative easing) is needed to
help the recovery," Cameron Peacock, market analyst at IG
Markets, said.

"On the other hand, a stronger-than-expected read could be
interpreted as a good indicator that the global economy is on
track for a recovery. This would aid risk assets and reduce the
need for refuge in the USD. With so much uncertainty, it's easy
to see why Europe is looking at a flat start to the trading
day."

Analysts expected the number of people employed in economic
activities excluding agriculture in the United States to have
increased by 150,000 units last month, after a 200,000 increase
in December. U.S. unemployment is seen stable at 8.5 percent.

Federal Reserve Chairman Ben Bernanke said on Thursday he
was seeing signs that some of the factors dampening U.S.
business investment, including uncertainty surrounding European
bank woes, might be waning, but he kept the option of further
easing on the table.

His comments came as Greece pushed back the actual debt swap
agreement needed to secure a crucial second batch of funds to
prevent Athens from going into a default that would hammer the
European financial system. Euro zone finance ministers aim to
agree a second financing package for Greece on Monday.

Investors will be looking for indications on the economic
health of crisis-struck euro zone when final euro zone PMI
readings are released just before 0900 GMT. The Markit services
and composite PMIs are forecast to come in at 50.5 and 50.4,
respectively, in line with flash readings published last week.

Euro zone retail sales, due for release at 1000 GMT, are
expected to have fallen 1.3 percent year on year in December,
after a 2.5 fall in the previous month.

The world's number two truck maker Volvo felt
euro zone debt woes weigh heavily on demand in Europe in the
fourth quarter, hitting order intake in its biggest market,
though it said the market appeared to stabilise toward the end
of year.

Of interest for the personal and household good sector
, LVMH, the world's biggest luxury goods group,
said the outlook for 2012 was "excellent" and hiked its dividend
after rapid growth in Asia and at its Louis Vuitton brand helped
it post a forecast-beating rise in full-year operating profit.

Portugal's largest bank by market capitalisation, Banco
Espirito Santo, is expected to report a fourth-quarter
loss of between 100 million euros and 194 million on Friday,
after a year-ago profit of 105 million.

Finnish refiner Neste Oil, also due to publish
results, is seen posting a 52 percent fall in its fourth-quarter
comparable operating

MARKET SNAPSHOT AT 0745 GMT

LAST PCT CHG NET CHG

S&P 500 1,325.54 0.11 % 1.45

NIKKEI 8,831.93 -0.51 % -44.89

MSCI ASIA EX-JP -0.09 % -0.46

EUR/USD 1.3138 -0.04 % -0.0005

USD/JPY 76.19 -0.05 % -0.0400

10-YR US TSY YLD 1.830 -- 0.01

10-YR BUND YLD 1.846 -- 0.00

SPOT GOLD $1,758.09 -0.07 % -$1.30

US CRUDE $96.44 0.08 % 0.08

* Markets hold ranges before U.S. jobs data

* Nikkei slips before U.S. jobs data, Sony surges

* Euro nudges lower after China data; U.S. Jobs eyed

* Brent steady above $112 on Iran tension, US jobs data eyed

* LME copper steady; heads for first weekly loss in four

* Gold headed for 5th winning week; US data eyed

* Wall St holds steady as payrolls set to test rally

* Prices little changed on jobs hope, Europe concerns

COMNPANY NEWS

LVMH

The world's biggest luxury goods group, said the outlook for
2012 was "excellent" and hiked its dividend after rapid growth
in Asia and at its Louis Vuitton brand helped it post a
forecast-beating rise in full-year operating profit.

MISYS, TEMENOS

Britain's Misys said it was in talks with its Swiss rival
Temenos about an all-share merger to create a bigger player in
global banking software.

BT

Lower regulatory charges, cost cuts and strong demand for a
wide range of services enabled Britain's BT to post solid
third-quarter core earnings on Friday and lift aspects of its
forecasts.

FRANCE TELECOM

Hong Kong's Hutchison 3G will buy Orange Austria from France
Telecom and a private equity fund in a deal valued at 1.3
billion euros ($1.7 billion) including debt, expanding the
corporate footprint of Asia's richest man in Europe.

DEUTSCHE BANK DBKGn.DE, COMMERZBANK CBKG.DE

Germany's banks are set to reach the EU bank regulatory
capital targets on their own strength, the new head of Germany's
financial supervisor Bafin said on Thursday.

DASSAULT

France could seal a long-awaited deal for Dassault to sell
at least 60 Rafale fighter jets to the United Arab Emirates by
April, turning around what appeared to have been a lost cause,
French newspaper La Tribune reported.

VOLVO

The company said its fourth-quarter trucks unit order intake
fell 7 percent year on year after a 18 increase in the previous
quarter.

VINCI

The French infrastructure group said that its Eurovia unit
had won five highway maintenance contracts in the UK worth more
than 1.7 billion euros.

TELENOR

The Norwegian telecom firm could quit India now after the
Indian Supreme Court revoked its mobile licences and not wait
for new market rules to be introduced, the company's chief
executive told Reuters.