MORNING BID EUROPE-Egyptair questions remain; UK's "in" camp lead

* A look at the day ahead from European Economics and Politics Editor Mark John and Nigel Stephenson, specialist editor, EMEA markets. The views expressed are their own.

LONDON, May 20 (Reuters) - Efforts continue today to get behind the reasons for the crash of the EgyptAir flight between Paris and Cairo, with Egypt saying the cause may be terrorism. The airline late last night corrected a previous assertion that flotsam found in the Med earlier in the day was wreckage from the plane, insisting the search and rescue mission continued. Still too early for any confident conclusions, but Los Angeles International Airport was the first major U.S (Other OTC: UBGXF - news) . air transportation hub to say it was stepping up security measures.

There has been a clear shift in perceptions of the outcome of Britain's EU vote on June 23, registered both in polls and betting odds. Betfair now has a 79 pct implied probability of a "remain" vote while the latest Comres poll overnight shows "remain" with an 11 pct point lead. Set against that is of course the possibly significant margin of error in the polling, the still substantial number of undecided voters, and the view of many political analysts that "leave" voters are more likely to actually turn out than the "remain" camp.

MARKETS AT 0645 GMT

With (Other OTC: WWTH - news) no obvious signs of new initiatives from G7 finance leaders meeting in Japan, markets are still assessing the possibility of a June or July rise in U.S. interest rates after Fed minutes earlier this week signaled such a move was conditionally on the agenda. The dollar has slipped from Thursday's highs but is still close to two-month highs against its currency basket. U.S. Treasury yields are also off Thursday's highs, with comments from the apparently influential New York Fed chief William Dudley, who also said the economy could warrant a summer hike, viewed as "even-handed". Ten-year Treasury yields and those on German Bunds are flat.

In currency markets, the euro is up a shade at $1.1214, having fallen to a seven-week low of $1.1180 earlier. The yen is up 0.2 percent at 110.17. Wall Street fell, with the S&P hitting its lowest point since March on the Fed outlook, but Asian stocks fared better. MSCI (NYSE: MSCI - news) 's main Asia-Pacific exJapan index is up 0.7 percent while Tokyo's Nikkei rose 0.5 percent. European shares are set for gains of between 0.8 and 1.1 percent.

Daimler (LSE: 0NXX.L - news) will be in focus after the company cut its profit forecast for its truck division because of weaker-than-expected markets and announced a provision of around 500 million euros for another airbag recall.

Upcoming data/events/themes for markets reports on Friday:

- G7 finance ministers and central bank chiefs meet in Sendai, Japan

- EZ March current account and investment flows

- UK May CBI orders trends

- Poland April jobless

- Belgium May consumer confidence

- U.S. Q1 earnings: Footlocker, Deere, Campbell Soup (EUREX: CSPF.EX - news)

- U.S. April existing home sales

- Canada April retail and inflation data

- Mexico Q1 GDP

- S&P to review sovereign credit ratings of Switzerland, Netherlands, Oman; Fitch to review Estonia, Moody's to review Slovenia, Kuwait (Editing by Sonya Hepinstall)