Glance-Europe Factors-Shares seen lower; focus on banks, commods

LONDON, April 27 (Reuters) - European shares are expected to drift lower in early trade on Tuesday, with concerns persisting over Greece's fiscal situation, weaker commodity prices and a U.S. financial reform proposal seen weighing on sentiment.

Financial spreadbetters expected Britain's FTSE 100 to open 14 to 15 points lower, or as much as 0.3 percent down, Germany's DAX to open 10 to 11 points lower, or as much as 0.2 percent down, and France's CAC-40 to open 13 to 16 points lower, or as much as 0.4 percent.

U.S. stocks edged lower on Monday as bank shares fell on fears that financial reform making its way through Congress will curb profits.

The most sweeping overhaul of U.S. banking rules since the Great Depression stumbled in the Senate on Monday as Republicans united to prevent action on the bill, but the setback is not likely to be permanent.

Lawmakers in both parties said they were close to agreement and the Senate could take up the bill later this week.

Equity investors are expected to stay cautious as concerns over Greece's fiscal deficit pushed the cost of insuring against a Greek debt default to a record high on Monday. Germany said it could offer aid for Greece within days if it agreed to painful new austerity measures.

'Concerns as to overvalued stock prices continue to weigh on sentiment and the general absence of fundamental data at the start of the week didn't help either ... the bears are starting to emerge once again,' said Ben Potter, research analyst at IG Markets.

Resource-related stocks will be in focus as crude oil prices fell for a second day to trade below $84 a barrel as forecasts for repeated increases in U.S. inventories rekindled concerns of oversupply.

Investors await April U.S. consumer confidence numbers, due at 1400 GMT, while the February Case/Shiller home price index is due at 1300 GMT. The Federal Open Market Committee commences a two-day, rate-setting meeting.

European shares ended at their highest level in nearly a week on Monday. The FTSEurofirst 300 index of top European shares finished up 1 percent at 1,103.00 points, the highest close since April 20. The index has surged about 71 percent since hitting a record low in March last year.

---------------------- MARKET SNAPSHOT AT 0545 GMT ----------------------

LAST PCT CHG NET CHG
S&P 500 1,212.05 -0.43 % -5.23
NIKKEI 11,199.91 0.31 % 34.12
MSCI ASIA EX-JP 503.08 -0.62 % -3.13
EUR/USD 1.3379 -0.11 % -0.0015
USD/JPY 93.98 0.00 % 0.0000
10-YR US TSY YLD 3.800 --
0.01
10-YR BUND YLD 3.052 -
0.00
SPOT GOLD $1,154.10 0.06 % $0.72
US CRUDE $83.88 -0.38 % -0.32


* GLOBAL MARKETS-Euro slides on Greece fears; stocks sag

* S&P dips as profit fears hit banks; CAT lifts Dow

* TREASURIES-Prices steady before Fed meeting, debt auctions

* FOREX-Euro short-covering stalls as clock ticks on Greece

* Oil slides to below $84 on forecast U.S. stock build

* PRECIOUS-Gold inches up, near 1-week highs; FOMC eyed

* METALS-Copper falls on Greece worries; longer term firm



COMPANY NEWS



DEUTSCHE BANK

Germany's largest bank reported a pretax return on average equity of 30 percent in the first quarter.



BAYER

German drug and chemical maker Bayer AG expects China's medical market to grow nearly 10-fold over the next decade as the country aims to overhaul its medical system, a top executive said on Tuesday.



LAGARDERE

The media group will hold its annual shareholder meeting at 0800 GMT, for which activist investor Guy Wyser-Pratte has submitted two resolutions as he seeks to overhaul the company's partnership structure and gain a seat on the board.


SAINT-GOBAIN

French glass maker Saint-Gobain said it would set up a joint-venture with Turkey's Trakya Cam to build a car glass plant in Russia by 2013 to supply the growing Russian car parts market.



BIOALLIANCE PHARMA

The French biotech said privately owned pharmaceutical company Therabel has taken an equity stake in the company but it did not reveal the size of the stake.



NOVARTIS

Eye care products maker Alcon, which is being acquired by Swiss Drugmaker Novartis AG, reported on Monday that first-quarter profit rose 27 percent as it gained market share in key product areas including implanted lenses and glaucoma.

(Reporting by Atul Prakash) Keywords: MARKETS EUROPE FACTORS ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.