PARIS, Nov 6 (Reuters) - European stocks were set to inch up on Tuesday, reversing some of the previous day's losses, although gains could be limited as many investors stay on the sidelines, waiting for the outcome of the tight U.S. presidential election. At 0724 GMT, futures for Euro STOXX 50, for Germany's DAX and for France's CAC were up 0.1-0.2 percent. European shares fell on Monday, with the FTSEurofirst 300 index of top European shares losing 0.6 percent in very low trading volumes as investors avoided taking position ahead of the U.S. election. Polls showed President Barack Obama and Republican challenger Mitt Romney deadlocked in a race that will be decided in a handful of states. The balance of power in the U.S. Congress will also be at stake in Senate and House of Representatives races that will impact the outcome of "fiscal cliff" talks on $600 billion in spending cuts and tax increases, which are set to be automatically triggered at the end of the year unless a deal is reached. The Democrats were now expected to narrowly hold their Senate majority, while the Republicans are favoured to retain House control. "Beyond the winner of the presidential election, the real issue is about whether or not the new president will have enough support in Congress to deal with the fiscal cliff," said Bertrand Lamielle, head of asset management at Paris-based B*Capital. "(The best scenario) is for the next president to have a comfortable majority in the Senate and the House to avoid a standoff that would spook investors. The fiscal cliff really has the potential to kill U.S. economic growth and send the country back into recession." Debt-stricken Spain will be in the spotlight on Tuesday after El Pais reported the European Commission is forecasting a 1.5 percent decline in Spanish gross domestic product in 2013, significantly worse than the 0.5 percent contraction forecasted in by the Spanish government. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 0725 GMT LAST PCT CHG NET CHG S&P 500 1,417.26 0.22 % 3.06 NIKKEI 8,975.15 -0.36 % -32.29 MSCI ASIA EX-JP 521.65 0.26 % 1.35 EUR/USD 1.2776 -0.15 % -0.0019 USD/JPY 80.04 -0.3 % -0.2400 10-YR US TSY YLD 1.689 -- 0.01 10-YR BUND YLD 1.425 -- 0.01 SPOT GOLD $1,684.56 0.03 % $0.57 US CRUDE $85.57 -0.09 % -0.08 > GLOBAL MARKETS-Caution before US vote keeps Asian shares steady > Wall St rises in thin trade day before U.S. election > Nikkei falls as weak euro drags down exporters > U.S. 10-year notes edge lower, election awaited > FOREX-Euro hampered by worries over Greece; Aussie awaits RBA > Gold flat after coming off 2-mth low; US election in focus > LME copper rises, off 2-month low; U.S. elections eyed > Brent steadies under $108; U.S. elections, Greece in focus COMPANY NEWS: BMW The world's largest premium carmaker posted a third-quarter gain in underlying profits that be at ex expectations and reaffirmed it expected to earn more money before tax than ever before this year. L'OREAL The world's biggest cosmetics group is feeling the effects of the slowdown in China and "brutal" trading conditions in South Korea and Taiwan, the company said. ADECCO The world's largest temporary staffing firm said revenues fell further in Europe in the third quarter, dragged down by the region's crippling debt crisis. HANNOVER RE The firm beat forecasts with net profit that rose by 63 percent to 265.5 million euros ($339 million) in the third quarter, helped by surging investment income and a dearth of big damage claims. UNICREDIT, INTESA SANPAOLO Italy's biggest bank by assets denied on Monday there were any plans for a tie-up with rival Intesa Sanpaolo after sources close to the matter said UniCredit chief executive Federico Ghizzoni had been sounded out on the issue. ENEL Moody's cut the rating of Italy's biggest utility, Enel, to Baa2 from Baa1 on Monday to reflect increased challenges in its core markets of Italy and Spain. INTERCONTINENTAL HOTELS The world's biggest hotelier is opening up talks on the sale of its New York Barclay hotel to a wider group of prospective buyers after holding lengthy exclusive talks with one group, the company said on Tuesday. TELEFONICA DEUTSCHLAND The firm's core operating profit rose 14.1 percent in the third quarter as it managed to add clients in one of Europe's most competitive mobile telecom markets. CREDIT SUISSE GROUP The Swiss lender has set up an asset management venture with key shareholder and sovereign wealth fund arm Qatar Holding, the Swiss banking group said on Tuesday. PANDORA Danish jewellery maker Pandora on Tuesday raised its full-year outlook after third-quarter operating profit beat forecasts on the back of double-digit percentage sales increases in the Unites States and Europe. VESTAS The ailing Danish wind turbine manufacturer's plan to cut 3,700 jobs by year-end could be extended already early next year, daily Jyllands-Posten reported. Separately, daily Berlingske Tidende wrote that Vestas has engaged investment banks to search for alternatives to a partnership with Japan's Mitsubishi in case the companies will not land a deal, Berlingske said. DSM The Dutch chemicals and vitamins group missed quarterly operating profit forecasts and said its 2012 outlook was "largely unchanged". TOTAL The French oil group has made its first move into Australian shale gas, announcing that it has signed a farm-in agreement with Central Petroleum for shale gas exploration permits in central Australia. BNP PARIBAS France's No. 1 bank is about to let its insurance subsidiary take on the job of lending to companies as tougher regulations ramp up the cost of traditional loans.