LIVE MARKETS-Decline of the DAX

* European stocks open lower

* Deutsche Bank (IOB: 0H7D.IL - news) , Caixabank (Amsterdam: CB6.AS - news) , Sabadell down after results

* Apple (NasdaqGS: AAPL - news) posts record profit, Alphabet (Xetra: ABEA.DE - news) disappoints

* Eyes on US payrolls data

Feb 2 (Reuters) - Welcome to the home for real time coverage of European equity markets

brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on

Messenger to share your thoughts on market moves: danilo.masoni.thomsonreuters.com@reuters.net

DECLINE OF THE DAX (0939 GMT)

One of the most impressive reversals in 2018 so far has been Germany's DAX, which started

out the year as a leader among European stock markets, fuelled to a fresh record high by the

cyclicals-led rally, only to reverse violently, dropping more than 5 percent in just eight

sessions. It's now in the red year-to-date.

The euro's relentless rise must be partly to blame for the outsize decline in the

exporter-heavy index, but rising bond yields are also a pressure for the DAX's big defensive

stocks in healthcare and utilities.

(Helen Reid)

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SPANISH BANKS' RESULTS "A LITTLE DISAPPOINTING" (0847 GMT)

It's a hefty day for European banking results, and the falls in the share prices confirm the

view from Jefferies analysts that earnings from Spanish lenders Sabadell and Caixabank

are somewhat underwhelming.

"4Q numbers decidedly mixed for both (-ve one-offs at CABK, weaker core trends at SAB), but

the guidance towards a brighter outlook may offer partial support," Jefferies analysts say.

Spanish banks did have a strong year in 2017 so some share price weakness was perhaps to be

expected.

(Kit Rees)

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OPENING SNAPSHOT: EUROPEAN SHARES DIP AS BANKING RESULTS WEIGH (0811 GMT)

It looks like day five of straight losses for European shares, with the STOXX 600 index

sliding further in early dealing.

Aside from oil & gas, all other sectors are in negative territory, with the disappointing

results from Deutsche Bank sending its shares 5 percent lower, while Spain's Caixabank and

Sabadell are also among the biggest fallers among banks following earnings.

We could see some volatility ahead of U.S. payroll data.

Here's your opening snapshot:

(Kit Rees)

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WHAT YOU NEED TO KNOW BEFORE EUROPE OPENS (0745 GMT)

European shares are set to open flat to slightly lower at the end of a week where rising

bond yields and strength in the euro have pushed the STOXX 600 benchmark down around 1.7

percent.

That is already the biggest one-week loss since early November when a slowdown in earnings

growth and similar bond market jitters weighed. Futures were trading between flat and a fall of

0.2 percent.

Tech stocks will be in focus after U.S. internet giants released their earning updates

yesterday with a record profit at Amazon possibly boosting shares in companies like Zalando (Swiss: OXZALG.SW - news) ,

while shares in semiconductor companies like AMS (IOB: 0QWC.IL - news) , Dialog Semi, and IQE (LSE: IQE.L - news) are expected to open

lower after Apple issued a light guidance and reported it sold fewer iPhones over the holiday

quarter than Wall Street had expected.

There is a raft of results in Europe too that will keep investors busy. Overall,

fourth-quarter earnings for the STOXX 600 are expected to increase by 11.9 percent year on year,

the latest Thomson Reuters (Dusseldorf: TOC.DU - news) data showed.

Deutsche Bank shares are indicated down 4 percent after the German lender reported a bigger

than expected net loss for 2017, which could test a strong rally in banking stocks seen so far

this year which was fuelled by expectations over tighter monetary policy and strong economic

growth.

(Danilo Masoni)

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EARLY MORNING EUROPEAN HEADLINE ROUND-UP (0738 GMT)

Lots of earnings today, here's what's jumped out so far:

Deutsche Bank posts third consecutive annual loss in 2017

Spain's Caixabank Q4 profit falls 70 pct from Q3

Spain's Sabadell Q4 net profit more than doubles on one-off sales

Danske Bank (LSE: 0NVC.L - news) beats Q4 pretax expectations, expects lower 2018 net result

Nordea banking group to list Finnish unit on Scandinavian exchanges

Philips Lighting Q4 earnings beat estimates on cost cutting

Tyre maker Nokian Q4 profit up 13 pct yr/yr

Tools maker Husqvarna Q4 result, dividend better than expected

Aker BP Q4 core profit lags market expectations

Fortum Q4 profit jumps 57 pct yr/yr

Tele2 (LSE: 0QE6.L - news) says will aim to grow dividends, Q4 core profit matches forecasts

Hexpol Q4 operating profit matches forecast​

Cevian Capital raises Ericsson (Hanover: ERCB.HA - news) stake to 5 pct of votes

Spanish property developer Metrovacesa (Stuttgart: 892583.SG - news) cuts listing price

AirAsia CEO says looking at Boeing (NYSE: BA - news) 787 for AirAsia X fleet growth

AstraZeneca (NYSE: AZN - news) flags return to drug sales growth in 2018

Britain's BT says on track for year after Q3 meets its expectations

Cobham (Other OTC: CBHMF - news) sells communications units to Viavi for $455 million​

Doorstep lender Provident Financial (Other OTC: FPLPF - news) names new CEO

Satellite company Avanti appoints new CEO​

EU clearing house system passes stress test

(Kit Rees)

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BUT FUTURES POINT TO STEADY OPEN FOR EUROPEAN SHARES (0702 GMT)

Contrary to earlier calls from financial spread-betters, European stock index futures have

opened with slight gains, indicating this week's sell-off could ease somewhat.

The STOXX 600 is down around 1.8 percent so far this week, set for its biggest weekly loss

since November

Here's your snapshot:

(Danilo Masoni)

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DEUTSCHE BANK POSTS BIGGER THAN EXPECTED LOSS (0643 GMT)

Banks, recently buoyed by rising bond yields and optimism about economic growth, could be in

focus today after the DAX-listed heavyweight lender disappointed analyst expectations with a

2017 loss of 497 million euros in 2017.

(Danilo Masoni)

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MORNING CALL: EUROPE SET TO EXTEND LOSING STREAK (0630 GMT)

Good morning and welcome to Live Markets.

Rising bond yields and a stronger euro are likely to put European shares under pressure for

a fifth day in a row, one day after the export oriented German DAX index fell 1.4 percent - its

biggest one-day loss since early November.

Over in Asia, the euro neared multi-year peaks as talk of policy tightening in Europe and

expectations that inflation is set to gear higher drove up borrowing costs globally, a move that

sparked a sell-off in Asian equities.

Later in the day the focus will be the U.S. payrolls report. "Anticipation is elevated after

a hawkish FOMC meeting... A strong number may increase the probability of four rate hikes this

year," says Credit Suisse (IOB: 0QP5.IL - news) in its investment daily note.

We'll also be keeping an eye on tech stocks here in Europe after results from big internet

companies in the US. "Some anxiety is fuelled by a trend for companies that miss estimates to be

penalized... Facebook (NasdaqGS: FB - news) bucked the trend, forecasting rising ad sales despite a dip in usage.

Apple reported record quarterly revenue and profits after the bell, Amazon’s results easily beat

expectations, but Alphabet disappointed," adds Credit Suisse.

Back to Europe, here are your opening calls, courtesy of CMC Markets (LSE: CMCX.L - news) .

FTSE100 is expected to open 5 points lower at 7,485

DAX is expected to open 63 points lower at 12,940

CAC40 is expected to open 9 points lower at 5,445

(Danilo Masoni)

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(Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)