AMERICAN MARKETS OUTLOOK: U.S. stock markets are expected to open a touch higher Thursday, as investors look ahead to key inflation data due Friday.

"Wall Street's charge seems to have paused for breath ahead of tomorrow's non-farm payroll figure," says Angus Campbell, of spreadbettor Finspreads. The payroll figure will be key for the market following recent disappointing data that indicated a cooling of the U.S. economy, he adds.

Data set for release Thursday include the Challenger Layoffs Survey, third-quarter non-farm labor productivity and unit labor costs, September factory orders and October chain store sales.

Finspreads is calling the Dow Jones Industrial Average to open up 10 points at 12,041, the Nasdaq up four points at 1711 and the S&P 500 up 1.2 points at 1369.

EUROPEAN MARKETS: European shares are mostly lower. In London, the FTSE 100 is down 0.1% at 6143.40, with mining stocks the worst hit, and only the energy and pharmaceutical sectors posting gains. In Frankfurt, the DAX is down 0.2% at 6145.50, with BASF shares down and MAN shares higher after both companies released financial results. In Paris, the CAC is down 0.6% at 5336.90.

Bunds and gilts are both trading a shade lower after the euro-zone manufacturing PMI came in a little above consensus. Investors are awaiting the European Central Bank's interest rate decision later in the day and any signals ECB President Jean-Claude Trichet may give on the likelihood of a December rate hike. The December bund future is down 0.17 at 117.99, while the December gilt is down 0.14 at 109.91.

In the currency market, the dollar is only marginally lower despite disappointing economic data Wednesday from the U.S. The dollar is down at Y116.80, the euro is up at $1.2762 and the pound is also up, at $1.9096.

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TOP STORIES:

CREDIT SUISSE 3Q NET PROFIT SLIPS 1%: Credit Suisse Group (CS) said its third-quarter net profit slipped 1%, amid a slump in trading revenue and a summer lull in private banking. (By Katharina Bart)

UNILEVER 3Q SALES RISE BUT PROFIT MARGINS FALL: Unilever PLC's (UN UL) sales momentum continued in the third quarter with a 4.8% rise in underlying revenue, though a step up in marketing spend meant profit margins were narrower. (By Michael Carolan)

BG 3Q NET UP 23% ON NEW GAS VOLUMES: BG Group PLC (BRG) reported a 23% rise in its third-quarter net profit as new natural gas volumes from Egypt, Trinidad and the U.K. more than offset lower U.S. natural gas prices and a hike in U.K. North Sea taxes. (By Benoit Faucon)

BASF 3Q OPERATING PROFIT UP 22%, NET FALLS ON BUYS: German chemicals company BASF AG (BF) said third-quarter operating profit rose 21.7% on the year, driven by its oil and gas operations as well as its chemicals unit. (By Gangolf Schrimpf)

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INSIGHT & ANALYSIS FROM DOW JONES NEWSWIRES:

=FOREX FOCUS: Recent signs of faltering in the U.K. economy are unlikely to undermine sterling support just now. (By Nicholas Hastings)

=CHARTING EUROPE: At this year's International Federation of Technical Analysts conference in Lugano, Switzerland, Perry Kaufman, the well-known author and expert on systematic trading, looked at the relationship between Federal Reserve rate hikes and S&P market reaction and found investors will have a hard time profiting from it. (By Axel Rudolph)

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STILL TO COME

ET/GMT COUNTRY/PERIOD

0730/1230 US Oct Challenger Layoffs Survey
0745/1245 EU Governing Council meeting of the ECB
0830/1330 EU Press conference following the ECB
meeting
0830/1330 US 3Q Non-Farm Labor Productivity, prelim
0830/1330 US 3Q Unit Labor Costs, prelim
0830/1330 US Oct 28 Jobless Claims
1000/1500 US Oct 21 DJ-BTMU Business Barometer
1000/1500 US Sep Factory Orders
1030/1530 US Oct 27 US Energy Dept Natural Gas Stocks
1100/1600 UK Oct JPMorgan Global PMI Mfg
1630/2130 US Money Supply
N/A US Oct Chain Store Sales
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OTHER NEWS:

The purchasing managers index for the euro zone's manufacturing sector rose to 57.0 in October from 56.6 in September. (By Paul Hannon)

Unemployment in Germany declined more strongly than expected in October, amid mounting signs of a more broadly based economic recovery in the euro zone's largest economy. (By Christian Vits and Christine Popp)

Dutch retailer Royal Ahold NV (AHO) said third-quarter sales were slightly higher on the year, but it said the quarter has been challenging in the U.S., reflecting increased competitor activity and weaker economic conditions, leading to margin pressure. (By Stefan Simons)

Iceland's central bank said a tight monetary stance remains unavoidable to ensure that the inflation rate continues to drop. The central bank, or Sedlabanki, earlier Thursday said it left its key interest rate unchanged at 14.00%, as financial markets expected. (By Carlo Piovano)

German truck maker and engineering group MAN AG (MAN.XE) said third-quarter net profit more than doubled on the year, fueled by strong demand for new trucks, and confirmed its outlook for the full year. (By Roman Kessler and Christoph Rauwald)

Switzerland-based refinery Petroplus Holdings AG will seek around CHF1 billion in the primary part of its initial public offering, according to a source familiar with the matter. (By Hans Schoemaker)

U.K. specialty chemicals and paints maker Imperial Chemical Industries PLC (ICI) reported a 10% rise in third-quarter pretax profit and said full-year profit will be in line with expectations. (By Anita Likus)

Medical devices company Smith & Nephew PLC (SNN) said it has held "very preliminary" talks with U.S. rival Biomet Inc (BMET). (By Elena Berton)

BMW AG (BMW.XE) said third-quarter net profit fell 0.7% on the year amid lower car sales and a higher tax rate, and it confirmed its target of reaching EUR4 billion pretax profit in the full year, from EUR3.29 billion in 2005. (By Christoph Rauwald)

Swiss private bank Julius Baer Holding AG (BAER.VX) named Dieter Enkelmann as its new financial chief, filling a position that has been vacant for nearly a year. (By Katharina Bart and Hans Schoemaker)

German drug and chemicals maker Altana AG (AAA) reported higher-than-expected third-quarter net profit, reiterated its full-year outlook and announced it will pay a EUR31 per share dividend following the sale of its pharmaceutical operations. (By Jan Hromadko)

Carphone Warehouse Group PLC (CPW.LN) said first-half net profit plunged on investment in its growing broadband Internet business, while revenues rose 40% due to high demand for the service. (By Daniel Thomas)