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FRANKFURT: The DAX top-30 index looked set to open 2.2 percent higher on Tuesday, according to premarket data from brokerage Lang & Schwarz at 0720 GMT.

The following are some of the factors that may move German stocks:

GLOBAL ECONOMY

China's economic growth in the fourth quarter slowed to the weakest since the financial crisis, adding pressure on a government that is struggling to restore the confidence of investors after perceived policy missteps jolted global markets.

Also, China's output of electric power and steel fell for the first time in decades in 2015, while coal production dropped for a second year in row.

LUFTHANSA

Indicated 1.8 percent higher

Mediation due to start in a long-running labour dispute between Lufthansa and cabin crew union UFO.

MERCK KGAA

Indicated 1.8 percent higher

The drugmaker appointed Udit Batra and Walter Galinat to its executive board.

UTILITIES

E.ON indicated 2.7 percent higher

RWE indicated 1.5 percent higher

No indication available for EnBW

Germany's energy industry managers to gather for the annual Handelsblatt energy conference in Berlin.

VOLKSWAGEN

Indicated 2.7 percent higher

Volkswagen plans to hire Louis Freeh, former head of the Federal Bureau of Investigation (FBI), to help the carmaker deal with authorities in the United States investigating an emissions scandal, Sueddeutsche Zeitung said.

Also, sources have said that VW's steering committee is due to discuss on Tuesday the state of play in the emissions scandal.

VW plans to continue efforts to push diesel engine technology in the United States, Chief Executive Mueller told RedaktionsNetzwerk Deutschland, a consortium of 30 newspapers.

Separately, South Korea plans to file a criminal complaint against the head of Volkswagen and Audi's local unit on Tuesday, saying that a recall plan for emissions-cheating cars fell short of legal requirements.

HENKEL

Indicated 1.8 percent higher

The consumer goods company will continue its strategy of seeking sustainable growth under new Chief Executive Hans Van Bylen, a step which includes the possibility of large acquisitions, supervisory board chair Simone Bagel-Trah told Rheinische Post.

ZALANDO

Indicated 4.2 percent higher

Europe's biggest dedicated online fashion retailer reported that revenue growth slowed somewhat in the fourth quarter from the blistering pace of the previous three months in what it described as a challenging market.

SOFTWARE AG

Indicated 7.5 percent higher

Software AG reported a record quarterly core profit margin as it sold more of its high-margin licenses and maintenance services, and forecast a further improvement in profitability in 2016, pushing its shares higher in pre-market trade.

WIRECARD

Indicated 3.1 percent higher

The company said Austrian railway group OeBB would use its payment solutions for its new sales system.

BIOTEST

Indicated 6.6 percent higher

The biotech group said it had agreed an exclusive cooperation with Kedrion Biopharma for the distribution of Bivigam in the United States.

HYPOPORT

Indicated 4.6 percent higher

The company reported fourth-quarter transaction volume of 10.9 billion euros, slightly below the previous four quarter.

ANALYSTS' VIEWS

E.ON - SocGen raises to "buy" from "hold", lifts its target price to 10.50 euros from 9.50 euros

AXEL SPRINGER - Barclays cuts the stock to "underweight" from "equal weight", lowers its price target to 42.50 euros from 54.85 euros

HANNOVER RE - SocGen raises to "hold" from "sell", lifts its price target to 99 euros from 80.3 euros

HUGO BOSS - UBS cuts the stock to "neutral" from "buy", lowers its target price to 76 euros from 105 euros

PORSCHE - Exane BNP Paribas raises to "neutral" from "underperform", lifts target price to 47 euros

OVERSEAS STOCK MARKETS

US markets closed.

Nikkei +0.6 pct, Shanghai stocks +3.3 pct.

GERMAN ECONOMIC DATA

Germany's consumer prices harmonised to compare with other European countries rose by 0.2 percent on the year in December and stagnated on the month, the Federal Statistics Office said on Tuesday, confirming preliminary estimates.

Also, ZEW sentiment index for January due at 1000 GMT. Economic Sentiment seen falling to 9.0 from 16.1, Current Conditions seen at 53.8 vs 55.0.

Copyright Reuters, 2016

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