European Factors to Watch - Shares seen flat ahead of rate decisions

(Adds futures, further details, company news; updates snapshot table)

LONDON, July 5 (Reuters) - European indices were poised to open little
changed on Thursday as investors consolidated recent gains ahead of widely
anticipated moves from the European Central Bank and the Bank of England to
stimulate the economy.

At 0605 GMT, futures for the Euro STOXX 50 index were flat,
Germany's DAX contracts were up 0.1 percent and France's CAC
futures were down 0.1 percent. Financial spreadbetters expected Britain's FTSE
100 to open 9 to 4 points lower, or as much as 0.2 percent.

The Euro STOXX 50 closed 0.4 percent lower at 2,312.41 points on
Wednesday, pausing after a 7.5 percent rally in the previous three sessions,
which had taken the index to two-month-highs after European leaders agreed last
Friday on bold measures designed to fight the euro zone debt crisis.

The deal, which included allowing the euro zone's bailout fund to inject
capital into struggling banks, was seen as paving the way for an interest rate
cut by the European Central Bank, aimed at providing further support to the
region's banking sector and economy.

The ECB, due to announce its policy decision at 1145 GMT on Thursday, was
expected to cut interest rates to a new record low of 0.75 and some economists
argued it may have to take more emergency measures soon to placate financial
markets.

Showing that the EU deal only partly reassured investors about the euro
zone's debt situation, Spain was still set to pay high premiums to sell bonds on
Thursday, including one at the benchmark 10-year maturity.

The Bank of England was also expected to launch a third round of monetary
stimulus on Thursday, moving to counter a recession and the effects of a
worsening debt crisis in the euro zone just two months after calling a halt to
the programme.

"It is clear that after such a strong start to the (quarter), investors are
preferring to wait and see the outcome and reaction to the ECB and BoE's policy
decisions," Cameron Peacock, a market analyst at IG Markets, said.

"The question now is - will consensus policy announcements from the ECB and
BoE trigger a 'buy the rumour sell the fact' response, or will investors buy
into the stimulus-induced recovery story these policies are seeking to achieve
and keep the rally alive?"

In a sign of market reluctance to pile into euro zone shares in the absence
of greater clarity on the effectiveness of the authorities' response to the
crisis, the Euro STOXX 50 failed to break above its 200-day moving average on
Tuesday and was now facing technical resistance at around 2,322 points.

Investors were set to acquire further evidence about the state of Europe's
economy when German industrial orders are published at 1000 GMT, with a flat
reading expected after a 1.9 percent drop in the previous month.
--------------------------------------------------------------------------------

> Shares ease from rally, euro stressed before ECB decision

> Nikkei flat ahead of ECB move, capped below resistance

> Euro on defensive as ECB easing decision awaited

> Gold inches up on ECB rate cut hopes

> Copper eases on caution ahead of ECB rate decision

> Brent steady at just below $100 on stimulus hopes

MARKET SNAPSHOT AT 607 GMT

LAST PCT CHG NET CHG

S&P 500 1,374.0 0.62 % 8.51

NIKKEI 9,079.8 -0.27 % -24.37

MSCI ASIA -0.22 % -1.10

EX-JP

EUR/USD 1.2528 0.02 % 0.0003

USD/JPY 79.77 -0.11 % -0.0900

10-YR US TSY 1.600 -- -0.03

YLD

10-YR BUND 1.463 -- -0.01

YLD

SPOT GOLD $1,615. 0.01 % $0.18

1

US CRUDE $86.91 -0.86 % -0.75

COMPANY NEWS

GKN, VOLVO

GKN confirmed a deal to acquire Volvo Aero for 633 million pounds. [ID:
nASM000390]

VOLKSWAGEN PORSCHE

Volkswagen aims to wrap up its long-awaited purchase of sports-car maker
Porsche on Aug. 1, two years before a planned target date to complete the deal
free of tax.

AVIVA

The insurer said it will exit 16 segments as part of a strategic overhaul
aimed to deliver a higher level of revenue growth, a lower cost-income ratio,
higher return on capital. [ID: nWLA9791]

SANOFI

The French drugmaker said on Wednesday that it was selling its roughly 19
percent stake in consumer products company Yves Rocher Group to the family that
already controls most of the company.

The drugmaker plans to cut 1,000 to 2,000 jobs in France, according to
French daily Le Figaro, the latest in a series of cost-cutting moves at the
company, some of whose key drugs face increased competition from generic rivals.

BAYER

India has put in place a $5.4 billion policy to provide free medicine to its
people, a decision that could change the lives of hundreds of millions, but a
ban on branded drugs stands to cut Big Pharma out of the windfall.

EADS

Airbus is pulling Europe's A400M airlifter out of flying displays at next
week's Farnborough Airshow due to continued engine problems, forcing it to sit
out popular annual stunts for the second year running, industry sources said.

RWE

A German court on Wednesday ruled that RWE could sue the Federal state of
Hesse for forcing the company to shut down one of its nuclear plants, increasing
the chances for financial compensation

GDF SUEZ, EDF

French Prime Minister Jean-Marc Ayrault said on Wednesday that gas prices in
France would not rise more than the rate of inflation and that the government
was preparing a plan to make gas and electricity more affordable for consumers.

BOUYGUES, VIVENDI

The two companies' telecoms units' unions are to meet "as soon as possible"
with French Industry Minister Arnaud Montebourg as they seek to avoid job cuts,
the ministry said.

BARRY CALLEBAUT

The world's largest chocolate products maker said it was investing heavily
in additional capacity to cope with expected growth after sales volume grew 6.5
percent in the third quarter.

PUMA

Puma sees clothing linked with motorsport teams as a way to skirt the
challenges in the saturated Chinese market, CEO Franz Koch told Reuters in
Dortmund on Wednesday.

(Reporting By Francesco Canepa)