Europe Factors-Shares set to rise as oil eases

LONDON, March 8 (Reuters) - European shares were set to edge up on Tuesday,
rebounding from losses in the previous session, as crude prices eased from highs
on reports Libya's Muammar Gaddafi was looking for a way to step down and as
OPEC discussed increasing production.

Banking shares are expected to be in focus after a German newspaper said the
European Banking Authority (EBA) will test banks' ability to withstand a 0.5
percent economic contraction in the euro zone in 2011 and a 15 percent drop in
European shares, under its regional stress test of lenders started last Friday.
[ID:nLDE727022] [ID:nLDE7212CR]

By 0732 GMT, futures for Euro STOXX 50 STXEc1, for Germany's DAX FDXc1
and for France's CAC FCEc1 were up 0.5 percent to 0.6 percent.

Brent crude LCOc1 softened by more than $1 to below $114 a barrel after
Kuwaiti oil minister said OPEC is in talks to boost production for the first
time in more than two years. [ID:nLDE72701Y]

Crude had earlier edged down as two Arab newspapers and al Jazeera
television said on Monday that the Libyan leader was looking for an exit deal,
but there was no official confirmation of the reports. [ID:nLDE72628J]

Falling crude prices eased some worries from recent weeks that persistently
high energy prices could derail the fragile economic recovery, though traders
said the concerns had not totally gone away and investors are likely to closely
monitor any signs of further political unrest in the oil-rich Middle East and
North Africa region.

"Some see oil as being way overbought at present and any attempt to call a
top in the market and book profits could provide another significant fillip for
equities across the board," said Terry Pratt, institutional dealer at IG
Markets. 

The pan-European FTSEurofirst 300 .FTEU3 index of top shares closed 0.4
percent lower at 1,143.86 points on Monday on concerns over the impact of high
oil prices.

Shares in Asia rose, with Japan's Nikkei .N225 edging up as investors
covered short positions after sharp losses in the previous session.

On the economic front, job prospects have improved in 18 large economies
from three months ago but are flat in eight countries and weaker in 13 others as
employers exercise caution, recruitment company Manpower said.

----------------------MARKET SNAPSHOT AT 0726 GMT----------------------  

LAST        PCT CHG        NET CHG 
S&P 500                  .SPX  1,310.13        -0.83 %         -11.02 
NIKKEI                  .N225 10,525.19         0.19 %          20.17 
MSCI ASIA EX-JP .MIASJ0000PUS    557.20         0.81 %           4.50 
EUR/USD                  EUR=      1.3978       0.07 %         0.0010 
USD/JPY                  JPY=     82.35         0.15 %         0.1200 
10-YR US TSY YLD    US10YT=RR      3.535         --              0.02 
10-YR BUND YLD      EU10YT=RR      3.299         --  0            .01 
SPOT GOLD                XAU= $1,427.25        -0.24 %         -$3.49 
US CRUDE                 CLc1   $103.83        -1.53 %          -1.61 
-----------------------------------------------------------------------     

* GLOBAL MARKETS-Oil eases a touch; euro runs out of steam   [ID:nL3E7E803I]

* US STOCKS-Wall Street drops as tech teeters                [ID:nN07115110]

* Nikkei edges up on short-covering, oil prices eyed         [ID:nTOE72703G]

* FOREX-Euro regroups after rally stalls; dollar off lows    [ID:nL3E7E802F]

* TREASURIES-Bonds dip in Asia ahead of string of auctions   [ID:nTOE72700U]

* Brent below $115 on reports Gaddafi seeks way to step down [ID:nL3E7E80CC]

* PRECIOUS-Gold steadies below record; ETF holdings inch up  [ID:nL3E7E805E]

* Shanghai copper slides, LME extends losses on growth woes  [ID:nL3E7E803F]

COMPANY NEWS:

ANTOFAGASTA (ANTO.L)

Antofagasta will pay a special dividend of 100 cents a share, the Chilean
miner said on Tuesday as it posted a jump in full-year earnings on higher copper
prices and production. [ID:nLDE72613S]

LONDON STOCK EXCHANGE (LSE.L)

The London Stock Exchange is seeing companies queueing up to float and is
looking at ways to widen the investor base open to them if it succeeds in its
takeover of Toronto exchange owner TMX Group (X.TO). 

LAFARGE (LAFP.PA) 

The global cement industry has bottomed out and will see more growth in Asia
and a recovery in some mature countries, the world's fifth-biggest cement maker
Italcementi (ITAI.MI) said on Monday.

OIL MUTUAL (OML.L)

The insurer reports a 14 percent rise in FY profits. [ID:nWLA4732]

NESTLE (NESN.VX)

The race to buy half of French yoghurt maker Yoplait has narrowed to six
candidates, including highest bidder Chinese group Bright Food, sources familiar
with the matter told Reuters on Monday. 

Separately, the incumbent Ivory Coast leader Laurent Gbagbo has issued a
decree under which the state becomes the sole purchaser of cocoa in the world's
top grower and handles its export to world markets, state television said on
Monday. [ID:nLDE72627G] 

KLOECKNER & CO (KCOGn.DE) 

Europe's biggest independent steel trader forecast significant growth in
earnings this year, with sales rising by more than ten percent as Europe's
biggest independent steel trader posted results for 2010 in line with
expectations. It also sees further growth in 2012. [ID:nLDE72627Z]

BARCLAYS (BARC.L) 

Barclays wants to close 100 branches and cut 700 staff in Spain as part of a
plan to focus the bank's activities in the country on wealthier clients,
newspaper Expansion reported, without citing sources.

UBS (UBSN.VX) 

Bank of America Corp (BAC.N) on Monday said that it has named Stuart Hendel,
the global head of the prime brokerage business at rival Swiss bank UBS AG
(UBSN.VX) (UBS.N), as head of its own global prime brokerage division.  

SANOFI-AVENTIS (SASY.PA)

Sanofi Aventis plans a reorganisation of its European activities that could
lead to 700 job cuts, La Tribune reported on Tuesday. [ID:nLDE727044]

SCOR (SCOR.PA)

French reinsurer Scor (SCOR.PA) is in talks to buy Dutch rival Aegon NV's
(AEGN.AS) U.S.-based Transamerica Reinsurance unit, Bloomberg reported on
Monday.