LIVE MARKETS-Come rain or sunshine, UK housebuilders in demand

Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your thoughts on market moves: rm://josephine.mason.thomsonreuters.com@reuters.net COME RAIN OR SUNSHINE, UK HOUSEBUILDERS IN DEMAND (0937 GMT) Corbyn or Johnson, "deal" or "no deal", UK housebuilders are expected to outperform from here. "We believe investors should focus on the fundamentals of the market, which remain healthy. Demand for homes remains high, with significant political support for ownership over other forms of tenure," Berenberg analysts say. As the chances of a UK general election loom, sterling has been sharply selling off, denting domestically-exposed stocks. But, analysts and traders say it's just about time for the sector to do well, helped by rising demand, government support and ultra-low interest rates. Deutsche Bank says "another powerful wave" of government support could be on the cards with a Help to Buy extending beyond 2023. And with little prospect of a rise in interest rates, the sector is expected to benefit. "It is politically unacceptable for any government to neglect the housing market as the 2017 Election so starkly illustrated," DB analysts say. A "buy" rating on Taylor Wimpey, Persimmon, Bellway and a "sell" on Berkeley Group are among Deutsche Bank's top calls. A London-based trader says it's a nice time to buy UK housebuilders as they are cheap and he believes if Tories can continue to govern the country housebuilders could get a boost from the extension of Help to Buy scheme. -- LIVE MARKETS-Street bullish on some UK housebuilders Here's a look at performance of housebuilders when an election was called in 2017: (Thyagaraju Adinarayan) ***** OPENING SNAPSHOT: LONDON RISES SLIGHTLY, EURO ZONE ENDS 3-DAY WINNING STREAK (0738 GMT) Euro-zone shares are on the back foot this morning, as investors lock in profits from a three-day winning streak that saw indices scale near one-month highs amid continued concerns over global trade tensions. Weakness in miners and domestically focused companies like housebuilders and the supermarkets have curbed the FTSE 100's gains as investors worry about a possible general election and deepening uncertainty over Brexit. The export-heavy index is up 0.1%, which may be considered pretty meagre given the massive drop in sterling earlier this morning. Plumbing company Ferguson is the top gainer, hitting October highs as investors cheered news it plans to spin off its UK business to focus on its North American operations. In France, Iliad has dropped almost 4% after its disappointing results, while Takeaway.com was down 2.3% after one of Just Eat's top shareholders said it would vote against its merger deal, looking for a better deal. IQE, which supplies wafer products to the semiconductor industry including Huawei, delivered a first-half loss and warned of order delays due to the U.S. restrictions on the Chinese company. Its shares are down 1.6%. (Josephine Mason) ***** AHEAD OF THE OPEN: PLUMBING, FOOD DELIVERY AND BREXIT (0659 GMT) European stock futures are a very mixed bag now, with Euro STOXX and DAX swinging in and out of negative territory, while FTSE futures are outperforming after sterling sank to more than 20 year lows as lawmakers and investors brace for a showdown in Parliament over Brexit later today. In corporate news, Ferguson shares are expected to get a lift from news the British plumbing products company will separate its UK operations to focus on its North American business and said CEO John Martin will step down in November this year. Dealers are also expecting pressure on Just Eat after one of its top shareholders said it would vote against the planned merger with Takeaway.com. Two dealers say French IT company Iliad results missed expectations and seen lower, while Nordex shares are up almost 4% in premarket trading after winning a contract to install wind turbines in Scotland. Investors will be keeping tabs on Hurricane Dorian, which pounded the Bahamas, killing at least five people and was heading towards the U.S. coast where more than a million people have been ordered evacuated. UBS estimated on Monday it could cause insurance industry losses of up to $25 billion. Swiss Re, Lancashire and Beazley have exposure to the U.S. market, according to traders. Deutsche Boerse may get a boost from news it will be promoted into the euro-zone chip STOXX50E index as part of the semi-annual reshuffle. UK headlines: IQE posts first-half pretax loss, cites weak smartphone market Lloyds Banking Group lands $4.5 bln Tesco Bank mortgage portfolio Ferguson to separate UK operations, CEO Martin to step down Glencore wins transfer tax dispute over Australian copper payments BRIEF-Ryanair Says Aug Traffic Up 8% To 14.9 Mln Customers BRIEF-DS Smith Affirms Financial View, Plastics Unit Disposal On Track BRIEF-Synnovia Says Unit Of Funds Advised By Camelot Capital To Buy Co For 125P/Share BRIEF-Eminence Capital Says It Intends To Vote Against Just Eat-Takeaway.Com Merger BRIEF-Restaurant Group Says Exploring Options Outside Of Travel Hubs In UK BRIEF-Real Good Food Says CEO Hugh Cawley To Step Down BRIEF-Severfield Affirms FY20 View (Josephine Mason) ***** AMID BREXIT SHOWDOWN, LONDON SINGING TO ITS OWN TUNE (0626 GMT) After briefing opening losses, European stock futures are showing remarkable strength in early deals, extending their winning streak into a fourth day even as investors remained rattled by the protracted U.S.-China trade spat. London's FTSE futures are stealing the show after sterling sank to January 2017 lows earlier as lawmakers (and the country) ready for a showdown in Parliament over Brexit. Lawmakers will decide today whether to move Britain one step closer to a snap election when they vote on the first stage of their plan to block PM Boris Johnson from pursuing a no-deal Brexit. Investors are eyeing whether the export-laden blue chip index can breach the 200-day moving average at 7,363 pence, considered a key technical resistance. "Traders are now pricing in the possibility of a no-confidence vote this week, a scenario which could get the UK’s political scene uglier than it already is," says Ipek Ozkardeskaya, senior market analyst at London Capital Group. "A snap election would mean that either Johnson receives a mandate to quit the EU with no deal on Oct 31, or the Brexit deadline is postponed – again. Both scenarios justify a weaker pound." Here are some early headlines: Lloyds Banking Group lands $4.5 bln Tesco Bank mortgage portfolio Former Renault-Nissan executive Deboeuf named PSA's industrial strategy director Glencore wins transfer tax dispute over Australian copper payments Roche, Spark again extend $4.3 bln takeover offer EXCLUSIVE-Telia offers concessions as EU probes Bonnier deal - EU document Vivendi trust says it could take action if banned from Mediaset meeting UK retail sales flat-line, consumers stockpile food for Brexit - surveys Hurricane Dorian could cost insurers $25 bln- UBS Deutsche Boerse promoted to euro-zone blue-chip stocks index in reshuffle (Josephine Mason) ***** EUROPE: SINGING TO ITS OWN TUNE, FOR NOW (XX GMT) Let's see what happens when Wall Street returns from the long holiday weekend, but for now Europe is expected to hold up pretty well again even as Asian markets remain under pressure overnight amid worries over the U.S.-China trade fictions. Financial spreadbetters expect London's FTSE to open 15 points higher at 7,297, after outperforming the rest of Europe yesterday amid pressure on sterling driven by Brexit disruption, Frankfurt's DAX to open 5 points higher at 11,959, and Paris' CAC to open 2 points lower at 5,491. (Josephine Mason) ***** (Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)