08:43GMT 29Oct2008-European shares surge, tracking U.S., Asia

European shares rise in early trade, after massive rallies in U.S. and some Asian stockmarkets as investors bet the Federal Reserve would cut interest rates in an attempt to spur economic growth.
The pan-European FTSEurofirst 300 index rises 4.5 percent to 871.85 points, rising for a second straight session after a five-day losing streak.
Wall Street marked its second-best day ever on Tuesday, with major U.S. stock indexes surging about 10 percent.
Banks lead the European rally, with UBS rising more than 11 percent, Standard Chartered adding 7.8 percent and Royal Bank of Scotland up 14.4 percent.

Reuters Messaging: rm://rebekah.curtis.reuters.com@reuters.net
08:33GMT 29Oct2008-Volkswagen plunges after Deutsche Boerse cuts weighting

Shares in German car giant Volkswagen drop 43.2 percent after Deutsche Boerse -- the operator of the Frankfurt stock exchange -- says it would cap the company's weighting in the DAX index to 10 percent, effective next Monday.
In addition, Stoxx Ltd, provider of European equity indexes, also says it will reduce Volkswagen's free-float factor to 0.3732 from 0.4963, affcting indexes such as the Dow Jones EURO STOXX 50.
"First, yesterday's bubble was way too high, partly justifying today's slump," a trader says.
"Second, the reweighting also plays a role since it should take some pressure off investment funds," he adds.
Shares in Volkswagen nearly doubled on Tuesday, shortly rising above 1,000 euros per share, giving the company a market value of 296 billion euros ($370.4 billion).
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Reuters Messaging rm://christoph.steitz.reuters.com@reuters.net
08:26GMT 29Oct2008-SAS shares rise on Sterling demise

Shares in Scandinavian airline SAS surge more than 14.5 percent to 36.40 crowns after Denmark-based Icelandic budget airline Sterling says it will file for bankruptcy on Wednesday and has grounded all its aircraft.
Analysts say the demise of Sterling would ease price competition for SAS, which has struggled with rising costs and rivalry from budget airlines in recent years.
SAS told Danish broadcaster DR it would offer stranded Sterling ticket holders free flights back to Denmark from foreign destinations where possible over the next 48 hours.
"The share has been under pressure and is bouncing up like everything else here today. But also one competitor is disappearing and that could of course be positive in the short term," said Glitnir analyst Mats Hyttinge.
"That decreases pressure on prices on those routes where they have been competing, even though there might be others entering."

Reuters messaging: katarina.gustafsson.reuters.com@reuters.net
07:25GMT 29Oct2008-Europe stock futures leap after U.S., Asia shares soar

European stock index futures rise sharply after U.S. and Asian stocks soared overnight and as investors bet on a U.S. rate cut later in the day.
Futures for the DJ Euro Stoxx 50 add 4.8 percent, for France's CAC rise 5.3 percent, and for Germany's DAX gain 2.8 percent.
Wall Street marked its second-best day ever on Tuesday, with major U.S. stock indexes surging about 10 percent. The U.S. Federal Reserve is set to announce its rate verdict at 1815 GMT. In a Reuters survey, primary dealers expect the Fed funds rate will be cut to 1 percent from 1.5 percent.
Japan also signalled on Wednesday it could cut interest rates this week. Tokyo's Nikkei average soared 7.7 percent.
Among a slew of results, investors will eye Bayer after the German drugs and chemicals group posts a 4.2 percent fall in earnings before interest, tax, depreciation and amortisation and before special items but confirms its full-year guidance for 2008 and says it sees continued earnings growth next year.

European companies reporting:
Q3 Standard Life
Q3 Shire
Interim Cairn Energy
Trading Update Stagecoach
Q3 Banco Bilbao Vizcaya Argentaria
Q3 Bayer AG
Q3 Dassault Systemes
Q3 Eramet SA
Q3 Suez Environnement SA
Q3 Saipem SpA
Q3 Akzo Nobel NV
Q3 Swedish Match
Q3 Schindler Holding

U.S. companies reporting include:
Q1 Procter & Gamble Co.
Q3 Kellogg Co.
Q3 Kraft Foods
Q3 Corning
Q1 Cardinal Health, Inc.
Q3 Qwest Comm.
Q3 MetLife, Inc.
Q2 Legg Mason
Q2 Symantec
Q3 Aetna Inc.
Q3 Allergan
Q3 Comcast Corporation
Q3 Hartford Financial Services
Q3 Praxair Inc
Q3 Prudential Financial, Inc.

Major economic events:
0930 UK consumer credit
0930 UK mortgage applications and lending
1100 U.S. MBA Purchase Index
1100 U.S. mortgage index
1230 U.S. new orders, durable goods
1815 FOMC anounces decision on interest rates
Germany CPI
Germany HICP

Reuters Messaging rm://rebekah.curtis.reuters.com@reuters.net
06:57GMT 29Oct2008-Stoxx Ltd changes Volkswagen free float factor

Stoxx Ltd has announced to change the free float factor of Volkswagen to 0.3732 from 0.4963.
"This decision reflects the changes in the shareholder structure of Volkswagen and results in a lower weighting of Volkswagen in the respective indexes," Stoxx Ltd says.
The affected indexes include the Dow Jones EURO STOXX 50 , Dow Jones STOXX 600 Large, Dow Jones STOXX Total Market Large, Dow Jones STOXX Sustainability and its respective sub- and sector indexes.
The change will be effective as of the opening of trading on Friday, Oct. 31, 2008.

Reuters Messaging rm://christoph.steitz.reuters.com@reuters.net

Keywords: MARKETS EUROPE STOCKSNEWS tf.TFN-Europe_newsdesk@thomson.com ak

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