MORNING BID EUROPE-China news reinforces rate divergence theme

* A look at the day ahead from Mike Dolan, Markets Editor EMEA. The views expressed are his own.

Dec 1 () - A series of Chinese factory surveys can be read either way: an official reading showed manufacturing at a three-year low, while two private surveys came in better than expected. The Japanese, Hong Kong, South Korean and Indonesian stock markets decided on the optimistic reading and rose smartly.

The data come after Monday's announcement that the yuan would join the IMF's Special Drawing rights. That won't happen for almost a year in practice, but it did allocate the RMB a much higher weighting than many expected -- almost 11 pct, mostly at the expense of the euro.

The yuan exchange rate was left undisturbed today, but the bigger picture plays into December's big interest rate divergence theme, the weakening euro and more immediately Thursday's widely expected easing from the European Central Bank. Euro/dollar gained a touch from Monday's seven-month trough of $1.0556.

Shorting euros is a very crowded trade at this stage, but the move probably came more from the dollar side after a surprisingly weak Chicago manufacturing reading yesterday.

The S&P 500 also lost about half a percent on Monday, even though futures show it is likely to regain much of that later.

Euro stocks are set for gains of about 0.5 pct at the open. Brent is a fraction higher at just under $45, helped by the cheaper dollar. Ten-year Treasuries are steady, with the two-year Bund/T-note spread still elevated at nine-year highs of about 136 bps.

UK banks passed the BoE's latest stress tests, as expected. Swiss Q3 GDP was flat, missing forecasts. No change in Australian or Indian interest rates.

-- The ECB's preferred gauge of the market's long-term inflation expectations, the five-year, five-year breakeven forward, reached three-week highs. The market looks confident a comprehensive easing package is on its way.

-- European shares head for a stronger start on the first trading day of the month, tracking sharp gains in Asian equities, with miner seen getting support from a rally in metals prices following a weaker dollar. Stock index futures are up 0.3 to 0.6 percent.

-- AccorHotels, Europe's largest hotel group, bought three hotel asset portfolios from European investors for 284 million euros ($300.6 million).

-- AB Inbev's bid to buy its biggest rival, SABMiller (Xetra: BRW1.DE - news) , will be the subject of a U.S (Other OTC: UBGXF - news) . Senate hearing next week, the Senate Judiciary Committee said.

-- Other stock movers: French new car registrations rose more than 11 percent in November; Japanese carmaker Nissan is not planning to issue new stock, denying a report by Japan's Nikkei; Electrolux forecast growing demand for home appliances on both sides of the North Atlantic next year; Linde (Amsterdam: LE6.AS - news) cut its 2017 profit target; Volkswagen (Other OTC: VLKAF - news) and the U.S. Justice Department want a U.S. judicial panel to centralise in Detroit hundreds of civil lawsuits alleging the German automaker defrauded consumers and shareholders; online sales at the sportswear maker Adidas are growing strongly.

-- Emerging market stocks saw their biggest rise in over a week, as an easing of the dollar and the first rise in Russian markets in three days helps investors shrug off fragile-looking Chinese PMI data.

-- China's yuan sees little excitement after its inclusion in the IMF SDR basket. Moody's says the outlook for Chinese regional government debt is negative. Societe Generale (Swiss: 519928.SW - news) tips long Brazil as one of its trades of 2016.

Upcoming events

* BoE publishes Financial Stability Report and stress test results

* Global Nov manufacturing PMIs

* European corp events: LafargeHolcim (Other OTC: HCMLF - news) investor day, Wolseley (EUREX: WLYH.EX - news) AGM, Dior AGM

* Germany Nov jobless, EZ Oct jobless

* Swiss Q3 GDP, Oct (HKSE: 3366-OL.HK - news) retail sales

* Italy Q3 GDP

* Canada/Brazil Q3 GDP

* Brazil Nov trade (Editing by Larry King)