(Adds futures, company news; updates market snapshot)

LONDON, Jan 6 (Reuters) - European shares were expected to rise for the
sixth session in a row on Tuesday with firmer metals prices seen supporting
miners, while financials could advance on hopes for a global economic recovery
later in 2009.

At 0731 GMT, futures for the Eurostoxx 50 STXEc1, Germany's DAX FDXc1
and the French CAC 40 FCEc1 were up between 0.3 and 0.5 percent.

On Monday, the FTSEurofirst 300 index of top European shares closed
1.9 percent higher to end at 873.01 points.

Energy shares will be in focus, with crude prices rising about 50 percent
since the intraday low of $32.40 reached on Dec. 19, also boosted by mounting
evidence of OPEC's compliance with production cuts.

Crude was steady above $48 a barrel after rising 5 percent overnight, as
Israel's deepening incursion into Gaza and a spat between Russia and Ukraine
over gas prices stoked fears of severe supply disruptions.

In the U.S., President-elect Democrat Barack Obama went to Congress two
weeks before taking office to try to entice Republican support for a massive
stimulus package with talk of big tax cuts.

The German government's second fiscal stimulus could reach 50 billion euros,
nearly double the amount expected just a week ago, senior officials said, as
leaders of Chancellor Angela Merkel's coalition met in Berlin to hammer out an
agreement on the package. [ID:nL5385937]

"European equity markets look set to ignore the U.S. lead once again,
spurring yesterday's reversion on Wall Street and instead edging higher at
Tuesday's open," Jimmy Yates, a dealer at CMC Markets, said in a note.

"Overall, however, the market still seems to be in a phase of finding its
feet for the New Year and with readings such as the non-farm payrolls and MPC
rate verdict still to come later this week, it's clear as to why the uncertainty
is prevailing."

U.S. stocks fell on Monday as investors booked profits after last week's
run-up, while concerns about slowing cell phone sales hit shares of the biggest
telecommunications companies.

Investors were looking ahead to U.S. economic indicators including the
Institute for Supply Management's non-manufacturing index for December and
housing market data for November later on Tuesday. The U.S. Federal Reserve will
also release the minutes from its December meeting.

----------------------MARKET SNAPSHOT AT 0732 GMT----------------------

LAST PCT CHG NET CHG
S&P 500 .SPX 927.45 -0.47 % -4.35
NIKKEI .N225 9,080.84 0.42 % 37.72
MSCI ASIA EX-JP .MIASJ0000PUS 305.37 0.47 % 1.42
EUR/USD EUR= 1.3531 -0.57 % -0.0078
USD/JPY JPY= 93.19 -0.28 % -0.2600
10-YR US TSY YLD US10YT=RR 2.483 -- 0.01
10-YR BUND YLD EU10YT=RR 3.028 -- 0.01
SPOT GOLD XAU= $848.50 -1.21 % -$10.40
US CRUDE CLc1 $48.19 -1.27 % -0.62
-----------------------------------------------------------------------

* Wall St slips on telecom, financials [ID:nN05392498]

* Nikkei up 0.4 pct on yen, hopes for US econ steps [ID:nECB01106]

* Dollar dips vs yen after hitting nearly 1-mth high [ID:nT7265]

* Oil steady above $48 on MidEast, Russian tensions [ID:nSIN367919]

* Asia stocks up on hopes of recovery [ID:nL6407217]

* Shanghai copper limit up ahead of index [ID:nMAN413463]

* Gold extends losses as dlr holds near 3-wk [ID:nSP415731]

* Treasuries -Fall in Asia on supply concerns [ID:nT6827]

COMPANY NEWS

ALLIANZ (ALVG.DE: Quote, Profile, Research), COMMERZBANK (CBKG.DE: Quote, Profile, Research)

Dresdner Bank parent Allianz and Commerzbank are in talks with the German
government over state aid for Dresdner Bank, Handelsblatt reported, citing
financial sources. [ID:nL5335627]

Separately, the Financial Times Deutschland cites financial sources as
saying Commerzbank plans to issue a state-guaranteed bond with a volume of 1-2
billion euros to fund its takeover of Dresdner Bank.

PORSCHE (PSHG_p.DE: Quote, Profile, Research), VOLKSWAGEN (VOWG.DE: Quote, Profile, Research)

Porsche raised its stake in Volkswagen's voting rights to 50.76 percent,
triggering a mandatory takeover offer for Sweden's Scania AB (SCVb.ST: Quote, Profile, Research) as a
result. [ID:nL5313441]

DEUTSCHE BANK (DBKGn.DE: Quote, Profile, Research)

Germany's largest bank said that its Chinese securities joint venture had
won regulatory approval from Beijing, becoming the latest Western institution to
gain access to China's restrictive domestic capital markets. [ID:nHKG268968]

DEUTSCHE BOERSE (DB1Gn.DE: Quote, Profile, Research)

Deutsche Boerse is in talks to buy a majority stake in Swedish trading
system provider Neonet (NEO.ST: Quote, Profile, Research), Handelsblatt reported, citing financial
sources.

Separately, Xetra orderbook turnover fell 34 percent year-on-year in
December to 94.3 billion euros while the number of Xetra transactions rose 29
percent to 15.5 million. On Eurex and ISE combined, the number of contracts
traded rose 3.2 percent year-on-year in December to 175.4 million.

XSTRATA (XTA.L: Quote, Profile, Research)

The world's fourth largest copper miner said mining operations at its
Ernest Henry copper and gold project were not expected to resume until later in
the week as rain continued to fall. [ID:nSYD354662]

EDF (EDF.PA: Quote, Profile, Research)

Its Lake Acquisitions vehicle bidding for British Energy BGY.L has
declared its offer wholly unconditional after receiving valid acceptances for
some 96.44 per cent of the current issued share capital.

LUFTHANSA (LHAG.DE: Quote, Profile, Research)

Italy's Northern League party renewed its calls on Monday for Lufthansa to
become Alitalia's new partner and said its leader would meet Prime Minister
Silvio Berlusconi over the matter. [ID:nL5194842]

FIAT (FIA.MI: Quote, Profile, Research)

Great Wall Motor Co Ltd (2333.HK: Quote, Profile, Research) said a Chinese court has dismissed in a
final ruling a claim by Fiat alleging infringement of a Fiat patent by the
Chinese car maker.

TELECOM ITALIA (TLIT.MI: Quote, Profile, Research)

Argentina's antitrust commission ordered Telecom Italia not to change its
participation in Telecom Argentina due to concerns over Telefonica's indirect
stake in the Italian company.

ALTANA (ALTG.DE: Quote, Profile, Research), FIELMANN (FIEG.DE: Quote, Profile, Research)

Changes to the mid-cap MDAX index announced by Deutsche Boerse on
Dec. 30 are effective at the beginning of trade Tuesday. Due to the takeover of
Altana by SKion, Altana's freefloat has dropped below 10 percent and its shares
will be replaced by glasses and contact lens maker Fielmann. Bertrand (BDTG.DE: Quote, Profile, Research)
will be included in the SDAX , replacing Fielmann.

MARKS & SPENCER (MKS.L: Quote, Profile, Research)

British retailer is set to cut more than 1,000 jobs in stores, its head
office and support functions following disastrous Christmas trading, The Times
web-site reported on Monday. The newspaper said the iconic high street chain
would announce the cuts on Wednesday, when it is due to release a trading update
to the City. A spokeswoman for M&S declined to comment. [ID:nLD586859]

UCB (UCB.BR: Quote, Profile, Research)

The Belgian pharmaceutical group says the U.S. Food and Drug Administration
(FDA) had requested a new safety update on its Cimzia drug in rheumatoid
arthritis patients. A meeting will take place within approximately 30 days.

LLOYDS TSB (LLOY.L: Quote, Profile, Research)/HBOS HBOS.L

Lloyds TSB is to give a number of senior roles to HBOS executives when it
completes the acquisition of the UK's biggest mortgage lender in January, the
Financial Times said. Dan Watkins, an HBOS board director and head of retail
products will be appointed as chief executive of mortgages in the new bank,
while Peter Jackson, head of products for retail banking, will become managing
director of consumer banking, the newspaper added.

Also, HBOS could be "hollowed out" by its takeover partner Lloyds leaving
the 79,000 people in the HBOS pension fund at risk of not having their pensions
paid in full, the Times cited a trustee as saying.
(Reporting by Atul Prakash)