LONDON, Jan 3 (Reuters) - European shares were set to retreat from 20-month highs on Thursday, with "overbought" trading conditions on several indexes and waning euphoria over the U.S. fiscal deal prompting some investors to take profit. At 0738 GMT, futures for Euro STOXX 50, Germany's DAX and France's CAC were 0.2 to 0.3 percent lower, a day after a rally fuelled by a U.S. budget deal to prevent huge tax hikes and spending cuts that would have pushed the world's largest economy into recession. "It would be naive to think that the U.S. economy is in good shape purely on the back of the budget bill. There are open question marks on spending cuts and whether the debt ceiling can be lifted," Joshua Raymond, strategist at City Index, said. The approval by U.S. legislators averted immediate concerns like tax hikes for almost all U.S. households, but did nothing to resolve other political showdowns on the budget that loom in coming months. Spending cuts of $109 billion in military and domestic programs were only delayed by two months. The FTSEurofirst 300 index ended 2.1 percent higher at 1,157.40 points on Wednesday, but charts showed the index was in an "overbought" territory, with its 14-day relative strength index (RSI) trading above 70, indicating it could retreat in the near term. A level below 30 is considered "oversold". Financial spreadbetters earlier predicted Britain's FTSE 100 would open as much as 0.2 percent higher. The index, which includes several heavyweight mining shares, could get some support after data from China, the world's top metals consumer, showed the country's services sector expanded in December. Investors will keep an eye on macroeconomic numbers for hints on whether the rally could be sustainable. Focus will be on data from the United States, where the ADP national Employment Report is due at 1315 GMT. Economists in a Reuters survey forecast that 133,000 jobs were created in December, up from 118,000 new jobs in the previous month. Initial jobless claims figures will be released at 1330 GMT. In the previous week, there were 350,000 new filings. Market snapshot at 0740 GMT: LAST PCT CHG NET CHG S&P 500 1,462.42 2.54 % 36.23 MSCI ASIA EX-JP 0.21 % 1.19 EUR/USD 1.3144 -0.3 % -0.0040 USD/JPY 87.17 -0.19 % -0.1700 10-YR US TSY YLD 1.820 -- -0.02 10-YR BUND YLD 1.438 -- 0.00 SPOT GOLD $1,685.35 -0.06 % -$1.00 US CRUDE $92.86 -0.28 % -0.26 * Asia stocks eke out gains on China hopes, oil eases * Wall St starts new year with a bang after 'cliff' deal * Brent falls towards $112; China data offsets US concerns * Copper rallies on U.S. fiscal deal and strong China data * Gold holds gains after U.S. fiscal deal * Budget deal pushes benchmark yields to 3-month high COMPANY NEWS FIAT Car sales in France, Spain and Italy in 2012 fell to the lowest levels in years, with December registration data underscoring the challenges facing the broader European economy. NEXT Britain's No.2 clothing retailer nudged its full-year profit forecast higher on Thursday as it posted a rise in fourth quarter sales. SAINT-GOBAIN The building materials group said on Wednesday it has acquired American Fluoroseal Corporation, a U.S.-based manufacturer of fluoropolymer bags for medical use. No financial details were given. BANKS Asian and European banks - including Deutsche Bank and Commerzbank - registered as U.S. swap dealers this week, joining Wall Street rivals in complying with new rules that aim to shed light on the opaque $650 trillion derivatives market. DEUTSCHE BOERSE In 2012, Deutsche Boerse's derivatives trading volume fell 18 percent and turnover on cash markets dropped 23 percent reflecting lower market volatility. REE Spain's Red Electrica (REE) is considering filing a complaint against Bolivia with the International Center for Settlement of Investment Disputes after Jan. 6 over the nationalisation of one of its subsidies in May, El Economista reported citing unnamed sources. ACCIONA The Catalan government withdraws a 1 billion euro water privatisation contract it had signed with an Acciona consortium for the next 50 years after considering an appeal by Agbar, La Vanguardia reported, citing the ruling. TECHNIP Technip has secured a contract with Mosaic Company for a new ammonia plant under consideration by the global crop nutrient company. ZODIAC AEROSPACE The aerospace group said it has acquired Innovative Power Solutions, a U.S.-based maker of aircraft electricity systems, without giving financial details of the deal.