European stock markets are seen mixed on Tuesday after oil gains and dollar losses ran out of steam but bonds look set to ease after benchmark U.S. Treasury yields hit 2005 highs.
Sanofi-Aventis is likely to lead early gainers after the world's third-biggest drugs maker beat expectations with its post-merger net 2004 earnings and forecast another strong performance in 2005.
Struggling Swiss reinsurer Converium is another focus after it succumbed to a bigger-than-expected net loss last year and announced more job cuts, while reassuring investors that it did not need to add to its loss reserves.
Dutch telecoms group KPN and British tobacco stock BAT are due to report figures.
The state of global manufacturing is also on investors' radar, with the release of several European updates due, including the euro zone purchasing managers' index at 0900 GMT and the publication of the latest U.S. ISM report at 1500 GMT.
A first reading of euro zone inflation for February is due out at 1000 GMT, while reports leaked on Monday suggest that unemployment data due at 0900 GMT will show recent labour reforms in Germany are beginning to bite.
*MARKETS
* Spread betters in London are calling the FTSE 100 , CAC-40 , and DAX indexes between 11 points down and 5 points up.
* The FTSEurofirst 300 index of leading European shares ended 0.35 percent down on Monday as firm crude prices boosted oil stocks while weighing on the broader market and as British bank HSBC fell after its profits disappointed.
* U.S. stocks slid on Monday, weighed down by declines in biotechnology shares, oil prices above $51 a barrel and a brokerage downgrade on General Motors.
European government bonds were set to be caught in the crossfire, with 10-year euro zone yields closing the previous session around the 4.73 percent mark.
* U.S. crude oil futures were priced at around $51.65 a barrel, having risen above $52 on Tuesday, as fresh comments from OPEC that high prices reduced the need to scale back output helped to offset cold weather support for heating oil demand.
* The dollar found support after data showing a swelling in Australia's current account deficit to a record sent the Australian dollar tumbling and sparked a broader recovery in the U.S. currency.
The euro traded at around $1.32 and the yen changed hands with the dollar at around 104.50.
* That helped to dull some of gold's renewed lustre as the yellow metal pulled back by almost $2 after hitting a high for the year on Monday of $437.55 per troy ounce.
* In Tokyo, the Nikkei average rose for a fourth straight day, ending 0.34 percent up at 11,780.53 -- its strongest close in 8 months -- as investors bought metal stocks on earnings optimism while selling exporters like Nissan Motor amid caution over the U.S. economy.
* Other Asian indexes like the Kospi , Hang Seng and Straits Times were mixed. Double click here [ID:nSP109517] to read a wrap of the action in Asian asset markets.