LIVE MARKETS-Brave but not that brave? It's airports vs airlines

* European stocks bounce back * STOXX 600 up 3.4% * Diasorin shares surge 13% on COVID-19 test * Oil stocks top gainers Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London. BRAVE BUT NOT THAT BRAVE? IT'S AIRPORTS VS AIRLINES (1120 GMT) You've seen sell-side brokers making the case for airlines after the coronavirus crash but you're still not sure you want to try catching that falling? There's an alternative trade for brave but not THAT brave investors. "It takes less bravery to invest in airports than in airlines", HSBC analysts reckon. "As providers of monopoly infrastructure, airports operate at far higher starting profit margins than airlines", they explain, adding that "if airport economics falter, their regulated price regimes typically allow that weakness to be recovered through higher future airport charges". While airports cut all estimates for 2020 for which they assume a 5% weaker traffic, they "broadly" maintain their forecast for the following year while expecting "a recovery in air travel, as seen after previous crises." HSBC has upgraded its rating for Zurich to buy, to hold for Aena. It left its buy tag on Fraport and Vienna unchanged. ADP's hold is also unchanged. (Julien Ponthus) ***** TRUMP'S DOUBLE EDGED SWORD WISH LIST (1010 GMT) Fed has cut interest rates by 50 bps and is seen cutting more and the dollar has taken a beating since late-February. And on top of that oil prices have also slumped, thanks to the Saudi-Russia standoff. President Trump's wishes been fulfilled, hey? Cheap oil is "good for the consumer" (isn't it?) and lower rates will keep dollar in check. He's got almost all he had wished for but with an unforeseen consequence: a 19% plunge in stock markets. The S&P 500 has fallen off a cliff edge after its record bull run until mid-February -- a barometer he has often used as a gauge of his success to run the economy. "Trump should be careful what he wishes for", a trader commented. "He's demanded lower oil, lower dollar and lower rates. He got his wishes but with unintended consequences". (Thyagaraju Adinarayan) ***** UK BUDGET: WHAT TO LOOKOUT FOR (0907 GMT) A tough test tomorrow for the new UK chancellor as markets are expecting some significant announcements, including a coordinated stimulus measure with the Bank of England to soothe investor nerves as coronavirus threatens to derail the economy. "It's a little under a month since Chancellor Rishi Sunak took over at the UK Treasury, but the circumstances surrounding his first budget this Wednesday have changed dramatically over that time," ING says. The bank says numbers are tight, assuming the Treasury honours a manifesto pledge to balance day-to-day spending within two-to-three years. That combined with lower growth and some previous spending announcement leaves probably at best a 10-billion-pound headroom. The UK govt is already planning to allow struggling businesses to pay tax bills back in smaller instalments over time and another option ING thinks they might come up with would be is to cut VAT temporarily as it happened back in 2008. Though VAT cut has been "a fairly successful form of short-term stimulus in the past", during this crisis with people likely to be stuck at home, consumption-based measures will only go so far. (Thyagaraju Adinarayan) ***** OPENING SNAPSHOT: LOSING STEAM (0825 GMT) European bourses have opened in positive territory but much lower than what futures suggested just a few hours ago. Financial, energy and mining stocks, which went through a bloodbath yesterday are doing most of the heavylifting. Tullow Oil, BHP group, Saipem and Royal Dutch Shell are among the top gainers this morning. Travel and leisure shares, which were among the top victims of the epidemic on the trading floors were also making a limited bounce back. Lufthansa and Ryanair were up 3% and 2.6% respectively. The STOXX 600 is up 1.8% as of 0808 GMT. Milan opened up 1.2% after the Italian government announced the whole country would be put in lockdown to fight the spread of the coronavirus. It is now only 0.2% up, which suggests sentiment is still and understandably, pretty weak. U.S. futures have also lost some steam even if they are up between 2% and 3%. (Julien Ponthus) ***** A TENTATIVE REBOUND? (0753 GMT) European stocks are expected to bounce back a bit after Monday's brutal selloff with futures pointing to 2% to 3% rise for all the main bourses. Trump's announcement on Monday that he will be taking "major" steps to gird the economy against the impact of the spreading coronavirus outbreak is helping markets with the U.S. futures rising 3%. The bounce back is likely to be fuelled by crude's 6% rise but investors are likely to be wary as the lockdown in Italy highlights the economic damage the virus is likely to cause in the weeks to come. In corporate news, the virus is still in focus with Norwegian Air halting flights to Italy, Qantas cutting international capacity and Deutsche Bank saying Frankfurt-based employee contracted the virus, while Deutsche Post assuring it can deal with the disruption. BHP meanwhile says it is in "good shape" to act if coronavirus disruption brings M&A openings. Infineon is seen jumping 7% after U.S. officials determine its Cypress Semi deal poses no national security concerns. In a headline that evokes the good old times of the (late?) bull market Novartis said it launched a programme to buy back up to 10% of shares. Some of the moves today are likely to outsized given the broad recovery in stock markets. (Julien Ponthus) ***** MORNING CALL: A LITTLE REBOUND FOR BREAKFAST (0633 GMT) There's no way this morning's expected rebound will compensate for yesterday's historic rout but surely, every little helps in trying to find a floor or some kind of bottom. Futures for the EURO STOXX 50 are currently up over 2% while financial spreadbetters are expecting European bourses to rise at the open. Asian markets have risen thanks to speculation of coordinated fiscal and central bank stimulus and oil prices have also recouped some losses. News of Italy getting into total lockdown to fight the spread of the coronavirus will however weigh on the mood in Europe. In the meantime, U.S. futures are currently up over 3% which should reassure some investors about the trend in early morning trading. (Julien Ponthus) ***** (Reporting by Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)