DJ EUROPEAN MIDDAY BRIEFING FROM DOW JONES NEWSWIRES

AMERICAN MARKETS OUTLOOK: U.S. stock markets are expected to open a touch lower Thursday in a correction after strong gains earlier in the week.

"After the past two days of impressive gains, the market may pause for thought and a sideways move could be forthcoming today," says Angus Campbell of spreadbettor Finspreads.

Economic data set for release Thursday include jobless claims, the DJ-BTMU Business Barometer, money supply, the Conference Board leading economic indicators and the Philadelphia Federal Reserve's manufacturing data.

CMC Markets is calling the Dow Jones Industrial Average to open down five points at 11322, the Nasdaq 100 down one point at 1569 and the S&P 500 down one point at 1294.50.

EUROPEAN MARKETS: European shares are flat to higher midday. In London, the FTSE 100 is up 0.2% at 5909.10 as gains from the mining sector outweigh oil company declines. In Frankfurt, the DAX is up 0.2% at 5821.83, boosted by a solid performance by U.S. stocks Wednesday and by Hewlett-Packard's earnings, which beat market expectations. In Paris, the CAC is flat at 5136.02.

Bunds and gilts are higher on supportive regional data and firmer U.S. Treasury bonds. The September bund future is up 0.24 at 116.95, while the September gilt is up 0.28 at 109.34.

In the currency market, the dollar is still sliding, after data released Wednesday that suggest U.S. interest rates are at their peak. The dollar is down at Y115.29. The euro is up at $1.2873 and the pound is also up at $1.8967.

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TOP STORIES:

EURO-ZONE ANNUAL INFLATION SLOWS IN JULY: The annual rate of consumer price inflation in the 12 countries that share the euro fell in July and was revised down from the initial estimate. (Data Snap by Paul Hannon)

ZURICH FINANCIAL POSTS BETTER-THAN-EXPECTED RESULTS: Switzerland-based insurer Zurich Financial Services AG (ZURN.VX) reported better-than-expected first-half earnings thanks to a strong performance at its general insurance division. (By Goran Mijuk)

EURO-ZONE INDUSTRIAL OUTPUT SLOWS: Industrial production in the 12 countries that share the euro eased back in June from May, as demand for durable consumer goods declined after surging a month earlier. (Data Snap by Ilona Billington)

UK RETAIL SALES SUFFER POST-WORLD CUP SLUMP: U.K. retail sales suffered a post-soccer-World-Cup slump in July, according to data released by National Statistics. (Data Snap by Andrew Peaple)

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INSIGHT & ANALYSIS FROM DOW JONES NEWSWIRES:

=FOREX FOCUS: As the market scales back expectations of further U.K. rate hikes later this year, the chances of sterling making a sustained break over $1.9000 may well have disappeared. (By Nicholas Hastings)

=CHARTING EUROPE: Risk Of Double Top Pattern: The Brent (ICE) October contract has failed to accelerate passed its August high and formed a double top pattern around the $78.50 area. (By TRADING Central)

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STILL TO COME

ET/GMT COUNTRY/PERIOD

0830/1230 US Aug 12 Jobless Claims
1000/1400 US Aug 5 DJ-BTMU Business Barometer
1000/1400 US July Conference Board Leading Econ
Indicators
1030/1430 US Aug 11 US Energy Dept Natural Gas Stocks
1200/1600 US Aug Philadelphia Fed Business Index
1300/1700 US Dallas Fed Pres Fisher speaks in
Shreveport, La.
1630/2030 US Aug 11 Money Supply

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OTHER NEWS:

Austrian oil and gas company OMV AG (OMV.VI) reported a 19% increase in second-quarter net profit, citing high oil prices and strong sales. (By Flemming Emil Hansen)

Dutch market-maker and specialist firm Van der Moolen Holding NV (VDM) said two U.S. legal settlements and an impairment charge at its brokerage business resulted in a second-quarter net loss of EUR9.4 million. (By Nicolas Parasie)

German airline Air Berlin PLC (ABI.XE) said it has acquired 100% of the shares in rival airline dba Luftfahrtgesellschaft as it also reported it swung to a profit in the second quarter. (By Jan Hromadko and Sarah Sloat)

Ciba Specialty Chemicals Holdings Inc. (CSB) unveiled a CHF202 million loss for the fist six month of 2006, but due to better profitability, the Basel-based company reiterated its full year earnings outlook. (By Stefanie Weitz)

Weir Group (WEIR.LN) reported a 50% rise in first half pretax pre-items profit due to continued expansion in higher margin, higher growth markets through the ongoing restructuring of the business. (By Molly Dover)

Swiss elevator and escalator company Schindler Holding AG (SCHN.EB) reported a 37% rise in first-half net profit including minorities on strong business and financial gains and said it expects further net profit growth for the full year. (By Martin Gelnar)

Dutch recruiting company Randstad Holding NV (37912.AE) said it will buy the HR Services unit of IT services company Getronics NV (35591.AE) for an estimated EUR65 million. (By Mathijs Schiffers)

Danish insurance company TrygVesta A/S (TRYG.KO) reported a 7.4% fall in second-quarter pretax profit, weighed down by a recent drop in equity markets, but it reaffirmed its full-year forecast for net profit. (By Louise Nordstrom)

U.K. Furniture Group MFI (MFI.LN) confirmed that it is in discussions with Merchant Equity Partners over the disposal of its retail business. (By Daniel Thomas)