AMERICAN MARKETS OUTLOOK: U.S. stock markets are expected to open a touch higher Thursday, with oil prices and economic data key to whether the Dow Jones Industrial Average can set a new record high this week.

"As the Dow heads towards record levels, investors are keeping a watching brief on the immediate economic data," says David Buik at spreadbetter Cantor Index. The index's high of 11,722.98 was reached in January 2000.

Data set for release Thursday include second-quarter GDP and revised corporate profits, jobless claims, money supply, the DJ-BTMU Business Barometer and the Conference Board Help-Wanted Index.

Martin Slaney of spreadbetter GFT Global Markets says oil price rises are damping optimism, while "traders are wary of yet more key economic figures Thursday and Friday."

GFT is calling the DJIA to open up 13 points at 11,702, the Nasdaq 100 up 4.3 points at 1660 and the S&P 500 up 1 point at 1337.6. Family Dollar, Merix, Accenture and Texas Industries are among companies set to post financial results.

EUROPEAN MARKETS: European shares are flat to higher midday. In London, the FTSE 100 is up 0.3% at 5945.10, with gains by oil majors and mining stocks, while Royal & Sun Alliance rose 3.1% on news it will sell its U.S. operations to the unit's management team. In Frankfurt, the DAX is flat at 5987.80 as higher oil prices continue to limit the recent momentum. Lower-than-expected German jobless numbers failed to give the market a boost. In Paris, the CAC is flat at 5242.40.

Bunds and gilts are a touch lower after hawkish comments from European Central Bank governing council members Axel Weber and Nicholas Garganas, who both warned of the need for higher interest rates to combat the threat of inflation. The December bund future is down 0.08 at 118.32, while the December gilt is down 0.06 at 110.34.

In the currency market, the dollar is mixed as the market continues to look for a clearer signal from U.S. data or from the Federal Reserve itself that interest rates have peaked. The dollar is up at Y117.68, the euro is up at $1.2716 and the pound is down at $1.8799.

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TOP STORIES:

GM: RENAULT-NISSAN TALKS MAY CONTINUE PAST OCT 15: General Motors Corp. (GM) Chief Executive Rick Wagoner said the company could continue to study a potential alliance with Renault (13190.FR) and Nissan Motor Co. (7201.TO) beyond the Oct. 15 deadline first set for their talks. (By Gren Manuel)

VOLKSWAGEN CEO "OPTIMISTIC" CAN RESOLVE MAN STRIKE: The chief executive of Volkswagen AG (VOW.XE), a key shareholder of Swedish truck maker Scania AB (SCV-A.SK), said he is "optimistic" his company can resolve its differences with German truck maker MAN AG (MAN.XE) over MAN's EUR9.6 billion ($12.3 billion) takeover bid of Scania. (WSJ)

ADECCO GIVES UPBEAT 3Q OUTLOOK, REPEATS TARGETS: Swiss staffing company Adecco SA (ADO) said revenue growth in the current quarter is "strong" and reiterated its financial targets ahead of a strategy meeting. (By Katharina Bart)

ROYAL & SUN ALLIANCE SELLS US OPERATIONS: U.K. insurer Royal & Sun Alliance Group PLC (RSA) said it is selling its U.S. operations to the unit's management team for GBP158 million, in a transaction that the company estimates will result in a pretax loss from the deal of GBP443 million. (By Margot Patrick)

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INSIGHT & ANALYSIS FROM DOW JONES NEWSWIRES:

=FOREX FOCUS: Shinzo Abe's new administration could well usher in a new period of yen strength. (By Nicholas Hastings)

=CHARTING EUROPE: The euro probably ended a correction lower from its all-time high at Y150.79 in August when it reached a low of Y147.66 on Tuesday. (By Axel Rudolph)

=ASSET CLASS: The equity markets took some heart from the stronger than expected U.S. new home sales numbers out yesterday. (By Alen Mattich)

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STILL TO COME

ET/GMT COUNTRY/PERIOD

0830/1230 US 2Q GDP
0830/1230 US 2Q Corp Profits, revised
0830/1230 US Sep 23 Jobless Claims
1000/1400 US Sep 16 DJ-BTMU Business Barometer
1000/1400 US Aug Conference Board Help-Wanted Index
1030/1430 US Sep 22 US Energy Dept Natural Gas Stocks
1100/1500 US Sep Kansas City Fed Mfg Index
1630/2030 US Sep 22 Money Supply
1930/2330 JPN Sep Tokyo CPI
1930/2330 JPN Aug Nationwide CPI
1930/2330 JPN Aug Household Spending
1930/2330 JPN Aug Jobless Rate
1950/2350 JPN Aug Indus Prod, prelim
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OTHER NEWS:

U.K. house prices rose at a strong pace in September with the annual increase rising at its fastest rate since February 2005, the Nationwide Building Society said. (By Ilona Billington)

Unemployment in Germany fell in seasonally-adjusted terms in September, a further indication that the recovering economy is prompting companies to take on more staff. (By Andrea Thomas and Christine Popp)

New orders for Germany's plant and machinery industry rose a real, or inflation-adjusted, 21% on the year in August, the industry group VDMA said. (By Maeve Curtin)

Swiss financial services firm Partners Group Holding AG (PGHN.EB) said it has raised EUR400 million by listing shares in a fund for alternative investments. (By Katharina Bart)

Drug delivery company SkyePharma PLC (SKYE) reported widening first-half losses, and offered little news on the planned divestment of its injectables unit. (By Elena Berton)

London Stock Exchange Group PLC (LSE.LN) said in a trading update that new-issue activity brought a 100% rise in total money raised and that trading volumes rose ahead of targeted levels. (By Henry Teitelbaum)

M&C Saatchi PLC (SAA.LN) reported lower first-half profits on short-term investment that the company said will support revenue growth. (By Athos Larkou)

Gazprom Neft (SIBN.RS), the oil-producing subsidiary of Russian natural gas giant OAO Gazprom (GSPBEX.RS), said its first-half net profit was $1.84 billion, its first results since being bought by Gazprom earlier this year. (By Andrew Langley and Anna Ivanova-Galitsina)

Swiss drugmaker Novartis AG (NVS) said new data from an intermediate study showed that a majority of patients taking experimental multiple sclerosis pill FTY720 saw no further worsening of their condition after two years. (By Anita Greil)

Alliance Boots PLC (AB.LN) said that trading has continued in line with the international pharmacy-led health and beauty company's expectations since the completion of its merger on July 31. (By Lilly Vitorovich)

U.K. music and book retailer HMV Group PLC (HMV.LN) said first-quarter total group sales rose 9.5%, thanks in large part to its acquisition of rival books retailer Ottakar's PLC (OKR.LN) earlier this year. (By Lilly Vitorovich)