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RTRS : European Factors -- Shares set for bounce, ZEW eyed
 
LONDON, Aug 18 (Reuters) - European shares were expected to open higher on
Tuesday, recovering a little of the ground lost in the previous session, when
they suffered their biggest drop in six weeks.
Financial spreadbetters expected Britain's FTSE 100 .FTSE to open up to 19
points higher, or as much as 0.4 percent, Germany's DAX .GDAXI to open up to
17 points higher, or as much as 0.3 percent and France's CAC .FCHI to open up
to 4 points higher, or as much as 0.1 percent.
On Monday, the FTSEurofirst 300 .FTEU3 index of leading European shares
fell 2 percent to 921.96 points, its lowest close since July 29, and its biggest
one-day percentage drop since July 2.
The European benchmark index is still up 42.8 percent from its lifetime low
hit on March 9, as investors have become more confident on the prospects for
recovery. Some analysts say there is not sufficient evidence of economic
recovery to justify the surge.
However, German analyst and investor sentiment is expected to have risen in
August on optimism over improvements in the global economy and the country's key
export sector, a poll showed on Friday.
The ZEW think tank's monthly survey of German economic sentiment, to be
released at 0900 GMT, will rise to 45.0 from 39.5 in July, according to the
mid-range forecast in a Reuters poll of 40 analysts.
The German economy pulled out of its deepest recession since World War Two in
the second quarter, expanding unexpectedly by 0.3 percent and boosting hopes of
recovery in the broader euro zone.
Later, investors' attention will switch to data on housing starts in the
United States, due at 1230 GMT.
Source