AMERICAN MARKETS OUTLOOK: U.S. stock markets are expected to open a touch higher Thursday as investors await a string of economic data and financial results due later in the day.

Data set for release include non-farm productivity, unit labor costs, jobless claims, the DJ-BTMU business barometer, natural gas stocks, money supply and April chain store sales.

"Labor costs will be closely watched," says Angus Campbell at Finspreads. The Dow Jones Industrial Average could break through its six-year high of 11,428.37 Thursday afternoon, after a failed attempt Wednesday, he adds.

Direct TV, Eastman Kodak, Estee Lauder, AIG and Elizabeth Arden are among the companies set to post results. Of the S&P 500 companies, around 70% have already reported this earnings season, with the majority beating expectations.

Finspreads is calling the DJIA to open up 20 points at 11,420, the Nasdaq up 3.7 points at 1690 and the S&P 500 up two points at 1309.8.

EUROPEAN MARKETS: European shares are a touch higher midday. In London, the FTSE 100 is up 0.2% at 6020.80, shrugging off both strong U.K. services PMI figures and a fall in AstraZeneca's shares after the company said it would discontinue the development of its Galida diabetes drug. In Frankfurt, the DAX is up 0.5% at 6000.75, making a technical recovery following Wednesday's losses, with support from lower oil prices and solid earnings from German blue-chips. In Paris, the CAC is up 0.4% at 5216.97.

Ahead of the Bank of England and European Central Bank rate decisions, bunds and gilts are being kept in check by a strong set of euro-zone and U.K. data. The June bund future is down 0.02 at 115.21, while the June gilt is down 0.15 at 109.31.

In the currency market, the dollar is stronger, helped by a combination of firm U.S. economic data, a sharp fall in crude oil prices and the assertion by Japanese Finance Minister Sadakazu Tanigaki that the G7 statement last month wasn't a call for dollar depreciation. The dollar is up at Y114.04, the euro is down at $1.2587 and the pound has fallen to $1.8380.

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TOP STORIES:

SHELL 1Q UP 3% ON OIL PRICE; NIGERIA UNREST HITS: Royal Dutch Shell PLC (RDSB.LN) said higher energy prices boosted first-quarter earnings by 3%, as higher oil prices barely offset the disruptions to output caused by Nigerian civil unrest and hurricanes in the U.S. Gulf of Mexico. (News Snap by Benoit Faucon)

EURO-ZONE SERVICES PMI RISES AGAIN: The purchasing managers index for the euro zone's dominant service sector rose to 58.3 in April from 58.2 in March. (By Paul Hannon)

TOTAL 1Q NET UP 15% ON HIGHER OIL PRICES: Total SA (TOT) reported a 15% jump in net profit for the first quarter of 2006, mainly on oil price increases. (News Snap by Anne-Sylvaine Chassany)

UBS 1Q NET UP 33% ON INVESTMENT, PRIVATE BANKING: UBS AG (UBS) said its first-quarter net profit rose 33% amid favorable conditions for trading at its investment bank and higher profits from its private-banking operations. (News Snap by Katharina Bart)

COMMERZBANK ON TRACK TO BEAT 2006 ROE TARGET: Commerzbank AG (CBK.XE) said that its first-quarter profit was driven by gains in trading and fee income, putting the German bank on track to beat its return-on-equity goal for 2006. (News Snap by Taska Manzaroli and Ulrike Dauer)

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INSIGHT & ANALYSIS FROM DOW JONES NEWSWIRES:

=FOREX FOCUS: Investors anticipating very hawkish comments from the European Central Bank later Thursday may be disappointed. (By Nicholas Hastings)

=THE SKEPTIC: Unilever may be showing long-awaited signs of profit recovery, but the struggle for volume growth goes on. (By Howard Wheeldon)

=CHARTING EUROPE: European and U.S. equity indexes probably formed a medium-term top this week according to this column's seasonality model and the current chart formations. (By Axel Rudolph)

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STILL TO COME

ET/GMT COUNTRY/PERIOD

0700/1100 UK BOE Monetary Policy Committee
interest rate decision
0745/1145 EU ECB interest rate decision
0800/1200 US Fed Gov Bies speaks on market risks
in Orlando, Fla.
0800/1200 GER WTO Dir-Gen Lamy, German Econ Min
Glos speak in Munich
0830/1230 EU ECB Governing Council press
conference
0830/1230 US 1Q Non-Farm Productivity, prelim
0830/1230 US 1Q Unit Labor Costs, prelim
0830/1230 US Apr 29 Jobless Claims
0840/1240 EU ECB Member Gonzalez-Paramo gives
opening speech at ECB statistics
conference in Frankfurt
0915/1315 US Pres Bush speaks on the National Day
of Prayer in Washington
1000/1400 US Apr 22 DJ-BTMU Business Barometer
1030/1430 US Apr 28 US Energy Dept Natural Gas Stocks
1100/1500 US Tsy Secy Snow speaks on combating
terrorist financing and financial
crimes in Vienna, Va.
1355/1755 US Pres Bush speaks on Cinco de Mayo in
Washington
1500/1900 US Tsy strips
1630/2030 US Apr 29 Money Supply
1900/2300 US Pres Bush speaks at the American
Jewish Committee dinner in Washington
N/A GER Chancellor Merkel speaks at econ conf
of American Council of Germany, New
York
N/A US April Chain Store Sales

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OTHER NEWS:

Retail trade across the 12 countries of the euro zone fell further in March, pointing to a stagnant first-quarter for the beleaguered sector. (Data Snap by Emily Barrett)

Consumer lending in the U.K. saw a solid rise in March, with mortgage lending reaching an 18 month high coming on top of a sharp drop in consumer credit growth. (Data Snap by Andrew Peaple)

U.K. house prices rose strongly for the third straight month in April, pushing the year-on-year increase to the highest level in 13 months, lender Halifax said. (Data Snap by Ilona Billington)

Suez SA (SZE) said its first-quarter revenue rose 15% and that it foresees a total of EUR1.1 billion in annual cost savings from its planned merger with Gaz de France (1020848.FR). (News Snap by Brian Lagrotteria)

Unilever PLC (UN, UL) posted a 5% rise in underlying first-quarter pretax profit and said it was on track to meet its full-year objectives. (News Snap by Michael Carolan)

U.K. specialty chemical and paint maker Imperial Chemical Industries PLC (ICI) reported an 8% rise in first-quarter pretax profit before special items, and said the outlook for the rest of 2006 is positive. (News Snap by Louise Pitcher)

German auto supplier and tire maker Continental AG (CON.XE) said first-quarter net profit rose 33% after improvements at all divisions despite problems in some of its customers. (News Snap by Christoph Rauwald)

Irish drug maker Elan Corp. PLC (ELN) reported a significant narrowing of first-quarter losses and reiterated that the relaunch of multiple sclerosis drug Tysabri will help the company to return to profitability. (News Snap by Quentin Fottrell)