MORNING BID EUROPE-Sarkozy returns to spotlight in anxious France

* A look at the day ahead from EMEA Economics and Politics Desk Chief Jeremy Gaunt and EMEA Markets Editor Mike Dolan. Views expressed are their own.

LONDON, Aug 25 (Reuters) - Former French President Nicolas Sarkozy will be "Sur Le Pont D'Avignon" or nearby this evening hoping to get French voters on side. It will be his first major campaign speech since announcing at the weekend that he wants another stint as president.

It is probably no coincidence that Avignon is in one of the parts of France where the National Front (FN) is strongest. Sarkozy's pitch to voters this time around is that he is best placed to provide France with security after Islamist attacks in Paris, Nice (LSE: 0FEW.L - news) and Rouen.

Anger about these attacks has helped fuel the prospects for Marine Le Pen (Other OTC: PENC - news) 's anti-immigration FN - votes that Sarkozy would need to oust the unpopular Socialist Francoise Hollande. In a new book, Sarkozy has also promised to be tough on immigration.

Swinging to the right did not work for Sarkozy last time he tried. But focusing on immigration worked for the EU Leave campaigners in Britain, has nearly propelled the far right Freedom Party into the presidency in Austria, and has helped Donald Trump win the Republican nomination in the United States.

The former president will be hoping that he can get the people of Avignon and the like to dance to his tune.

MARKETS (AS OF 0645 GMT)

World markets (Frankfurt: 4WM.F - news) still seem largely stuck in relatively tight summer ranges, with Friday's scheduled speech from Fed chair Janet Yellen in Jackson Hole seeing some caution about renewed Fed hawkishness creeping into Wall Street stocks.

The S&P500 shed about half a percent late Wednesday and the ViX volatility index nudged briefly above 14 pct for the first time in three weeks. Yellen is expected to give a clearer picture of longer-term Fed interest rate projections although attempts by her colleagues over the past week to rate hikes on the market agenda have done little to budge the 50/50 call for a 2016 increase still embedded in the futures market.

The US durable goods report today will obviously add more to the picture, but hardly enough to change the scenario on its own.

Brent crude prices are still skulking below $50 and just holding $49 on the latest inventory numbers. The dollar index is flat today, with sterling holding above $1.32 after a sizeable rally this week on further signs of economic stability since the Brexit vote in June.

More generally, it continues to be a very quiet August on major markets. The S&P500 and 10-year US Treasury benchmark yields are pretty much where they were a month ago. European stocks are firmer and Brent crude about $5 more expensive over the past month. Asia stocks slipped back earlier, but there's a mixed picture there too as MSCI (Frankfurt: 3HM.F - news) 's emerging market stock index steadied after a few days of steep declines. European stock futures are marked a touch lower, with a eye on the German August Ifo business sentiment index out later.

South Africa's rand is up a quarter percent against the dollar after losing more than 4 percent in the past two sessions and benchmark bond yields slip from two month highs.

However, with Finance Minister Pravin Gordhan refusing to meet police as requested for today could set the stage for his removal and most analysts are forecasting more pain ahead for markets.

Upcoming events/data/themes for market reports on Thursday:

* European corporate events: Playtech (Frankfurt: A1J0S4 - news) , Koninklijke Ahold (Other OTC: AHONY - news) , Vivendi (LSE: 0IIF.L - news) , CRH (EUREX: 558474.EX - news) , RTL Group (LSE: 0MNC.L - news) earnings

* German IFO business morale

* French Aug business climate

* UK Aug CBI Distributive Trades

* U.S (Other OTC: UBGXF - news) . July durable goods

* Fiji, Moldova rate decision

* U.S. sells seven-year notes (Editing by Toby Chopra)