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European Factors to Watch - Shares seen opening slightly higher

(Adds futures, live quote, company news, detail)

LONDON, Oct 5 (Reuters) - European stocks were set to open slightly higher on Friday following slight losses during the previous session, with many investors focused on the publication of U.S. non-farm payrolls economic data later in the day.

Futures for the Euro STOXX 50

index were up by 0.6 percent, while the futures contracts on Germany's DAX and France's CAC were up by 0.5 percent. Financial spreadbetters also expected Britain's FTSE 100

to open up by between 17 to 20 points, or as much as 0.3 percent higher.

Traders said persistent worries over the euro zone debt crisis, and uncertainty over the timing of any sovereign bailout deal for Spain, could keep European stock markets pegged within the tight 100 point trading range in which they have been over the last few weeks.

"I think it's going to be reasonably quiet ahead of the payrolls, but Spanish yields are creeping up, which is slightly worrying," said Joe Rundle, head of trading at ETX Capital.

"The risk is on the downside," he added.

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MARKET SNAPSHOT AT 631 GMT LAST PCT CHG NET CHG S&P 500 1,461. 0.72 % 10.41 0 NIKKEI 8,863. 0.44 % 38.71 0 MSCI ASIA <.MIASJ000 0.37 % 1.91 EX-JP PUS> EUR/USD 1.3012 -0.04 % -0.000 USD/JPY 78.38 -0.11 % -0.090 10-YR US <US10YT=RR 1.665 -- -0.01 TSY YLD 10-YR BUND <EU10YT=RR 1.474 -- 0.01 YLD SPOT GOLD $1,791 0.18 % $3.29 84 US CRUDE $91.41 -0.33 % -0.30

> Asia shares gain after ECB assurances, US jobs in focus

> S&P 500 on verge of 5-year high day ahead of jobs data

> Nikkei rises to 1-week high ahead of BOJ, U.S. jobs data

> U.S. bond prices fall on day before key jobs data

> Euro steady near 2-week high, yen firms on BOJ

> Gold hits 11-month high, extends gains to fifth day

> Copper edges higher on euro, U.S. jobs data in focus

> Brent slips below $112 ahead of U.S. jobs data

COMPANY NEWS: EADS EADS and BAE Systems

have edged closer towards winning political backing for a $45 billion merger amid positive signals from Britain and France, but German misgivings over control remain a major hurdle, sources close to the talks said.

CREDIT SUISSE

U.S. federal and state authorities are investigating Credit Suisse AG over mortgage-backed securities packaged and sold by the bank, people familiar with the probe said on Thursday.

Credit Suisse will lay off another 78 employees in the New York region by year-end, its fourth round of cuts for the area this year, a regulatory filing showed.

DEUTSCHE BANK

Deutsche Bank has suspended a handful of employees after it was criticised by a judge last year during a trial into tax evasion on carbon permits, a financial source familiar with the matter said on Thursday. Deutsche Bank declined to comment on whether any employees had been suspended.

DEUTSCHE TELEKOM Sprint Nextel Corp is considering making a rival bid for MetroPCS Communications Inc

, which agreed on Wednesday to a merger with Deutsche Telekom AG's T-Mobile USA, according to sources familiar with the situation.

VOLKSWAGEN

Volkswagen has cut its internal 2012 sales target for Western Europe by up to 140,000 vehicles, Handelsblatt said on Thursday, citing the group's works council head.

ITALIAN BANKS

Italy faces the risk of a credit crunch when its banks have to repay the cheap three-year loans they took from the European Central Bank, the chairman of the country's third-biggest lender Monte dei Paschi

said on Thursday. ENI

The oil and gas group will increase its oil and gas output to 2.5-3.0 million barrels of oil equivalent per day in five-six years time from 1.8 million boe/day today, its Chief Executive Paolo Scaroni said on Thursday.

FIAT

The group is ready to relaunch talks with General Motors GM.N for the European division of Opel should GM decide to sell it, Il Sole 24 Ore said. The idea would be to buy it at zero cost, it said.

(Reporting by Sudip Kar-Gupta)

((sudip.kargupta@thomsonreuters.com)(+44 207 542 9795)(Reuters Messaging: sudip.kargupta.thomsonreuters.com@reuters.net))

Keywords: MARKETS EUROPE FACTORS