LIVE MARKETS-Euro currency tailwinds? Beware of what you wish for!

* European stocks steepen losses, now down 0.8%

* Jump in new coronavirus cases weighs on risk sentiment

* Big earnings day: Centrica plunges, Rexel jumps

* FTSE 100 down 1.4% dragged down by oil stocks, Centrica 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@tr.com), Joice Alves (joice.alves@tr.com), Julien Ponthus (julien.ponthus@tr.com) in London and Danilo Masoni (danilo.masoni@tr.com) in Milan.

EURO CURRENCY TAILWINDS? BEWARE OF WHAT YOU WISH FOR! (1202 GMT)

The euro has hit a significant milestone this week falling against the dollar to a May 2017 low, with the move inevitably raising the question of what could this mean for European companies' earnings outlook.

In the context of trade wars and cornonavirus outbreak, this may be a tricky one to answer, but in order to make a major difference to earnings, the single currency would have to fall quite a bit more and quickly to at least close to parity with the U.S. dollar, says Markus Huber, trader at City of London Markets.

"The euro weakness doesn't seem to be pronounced enough yet in order to have a major impact on profits of exporters," he says.

And should the euro really see a quick and extensive drop, worries about a trade war would heighten up again, meaning that investors would most likely shy away from exporters, he adds.

In this chart you can see how euro zone exporters relative to the STOXX 600 have come off their November peak but remain at multi-year highs.

(Danilo Masoni)

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ESG WINNERS: WHEN ZERO PLAYS A BIG ROLE (1050 GMT)

BP's zero carbon goal by 2050 announced yesterday is seen as one of the most ambitious targets in the oil sector and this shouldn't come as a surprise given how ESG has been playing out as a secular theme.

"We believe BP has made a meaningful contribution to the ESG dialogue that is necessary to attract generalist investors back to the oil and gas sector," Jefferies analysts write.

Morgan Stanley meanwhile sees ESG as a multi-year theme such as TMT (Tech, Media & Telecom) in 1990s, BRICS (Brazil, Russia, India, China and South Africa) in the 2000s and FAANGs (Facebook, Amazon, Apple, Netflix and Google-owner Alphabet) in the 2010s.

MS strategists led by Graham Secker say in the 2020s, it'd be ESG (Environmental, Social and Governance)!

The theme has largely played out in Europe so far with only nascent signs of a pick-up in other regions, they say. And, climate change/decarbonisation is the main area where ESG considerations are lifting performance and valuations.

Utilities are seen benefiting the most from this theme and MS has upgraded the sector to "overweight", while expecting energy firms to suffer from outflows.

On a granular level MS sees the following stocks to benefit in Europe:

* Alstom: Urbanisation and green mobility are driving continued investment in rail networks globally.

* Covestro: Market underappreciating the company's gearing into sustainability, particularly in insulation and electric vehicles

* Kingspan: Structural demand for more energy efficient building

* Neste: Has been producing renewable Diesel from renewable feedstocks

* RWE: poised for renewables growth as it transitions away from nuclear and lignite power generation in Germany

In the U.S.:

* Ameren: Transition to renewables

* TPI Composite: The independent manufacturer of composite wind blades is likely to benefit from rising wind installations

* NextEra Energy: Leading market share in renewable energy production in the U.S.

* Ingersoll Rand: Serving heating, ventilation, and air conditioning markets with an energy efficiency and sustainability directive

* Algonquin Power & Utilities: decarbonising its utility business

(Thyagaraju Adinarayan)

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BIG JUMP IN VIRUS CASES, SMALL UPTICK IN FEAR (0935 GMT)

China reported a sharp rise in new coronavirus deaths and infections, as it changed the method of counting virus cases.

Does that matter?

Surely it does, but as UBS GWM's chief economist Paul Donovan points out "Reporting reality more accurately only matters economically if it changes fear levels".

And judging from volatility, the market's fear gauge, it looks like no game changer.

The euro STOXX volatility index in fact is up just 0.7 at 13.18 - sill well below this month's peak.

(Danilo Masoni)

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BIG EARNINGS DAY: FEW WINNERS AT THE OPEN (0838 GMT)

European shares are down about 0.4%, so just off yesterday's record highs as an earnings galore triggered lot of action at the open.

Among the top movers on the STOXX 600, most are trading in negative territory, meaning that today's earnings deluge isn't much of a party.

Biggest mover is Centrica with a two-digit percentage fall after announcing a steep fall in operating profit. Among stocks losing about 5% or above at the moment are Sweden's Boliden with a bigger-than-expected drop in Q4 operating earnings, Ipsen and Aegon with a cold welcome to their results.

High profile losers include Barclays, down 2.5% with a surprise Epstein investigation stealing the spotlight to the bank's solid results. Credit Suisse not getting much love either with a similar fall.

There are however a few winners in the financial sector like Commerzbank, up 4%, and NN Group, up 5%.

Other big winners of the earnings galore are France's Rexel up 8% and Clariant up 4.8%.

Also, telcos aren't doing badly with Telecom Italia up 2.7% and Orange rising 1.4%.

(Julien Ponthus)

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EARNINGS GALORE: CALLING THE ACTION AT THE OPEN (0750 GMT)

One easy to flag big mover at the open will be RIB Software following France's Schneider Electric 1.4 bln euro offer.

Among companies expected to retreat at the open following their Q4 are Airbus, Nestle, ThyssenKrupp and Aurubis.

Clariant seen rising in pre-market trading after its announcement to slash 600 jobs. In telcos, Orange is seen making some gains at the open.

The trend seems overall positive in the financial and banking sectors with Credit Suisse posing its best profit since 2010, Commerzbank swinging to a smaller-than-expected Q4 loss, Insurer NN Group announcing buybacks and rising dividends and Zurich Insurance boosting operating profit 16%.

Important to note that Barclays’ results just came in with a surprise statement about regulators probing its CEO's ties to late Jeffrey Epstein. Mixed indications at the moment on how the shares will do.

Some insight on how the coronavirus outbreak will hit European blue chips with Pernod Ricard cutting its annual profit growth forecast.

Also a lot of interest from one of the hottest sector at the moment with Just Eat Takeaway.com reported strong revenue growth and a small core profit.

There's also a bullish outlook from chip gear maker Applied Material which could provide a positive read-across for the sector's stocks in Europe.

On the other hand, Data showing auto sales in China are likely to have fallen 18% in January could weigh on sentiment for European carmakers.

(Julien Ponthus and Danilo Masoni)

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EARNINGS GALORE: ASK FOR THE MENU! (0652 GMT)

This is one of the busiest day of the earnings season with a deluge of trading updates and announcements.

It will be real tricky to identify who the top movers will be at the open with so many companies reporting at the same time.

Focusing on large caps, here are some of the top headlines at the moment:

Credit Suisse posts best profit since 2010 in Thiam swan song

Commerzbank swings to smaller-than-expected Q4 loss

Insurer NN Group announces plan for share buybacks and rising dividends

Zurich Insurance boosts operating profit 16%, ups dividend

Thyssenkrupp's Q1 profit drops as steel becomes new problem child

Aurubis sees stable new year as smelter maintenance ends

Clariant to slash 600 jobs as 2019 profit plunges and outlook dims

Airbus targets operating profit gain in 2020, after bribery settlement net loss

Nestle pushes back growth target after solid 2019

Pernod Ricard cuts annual profit growth forecast due to China virus

Orange Q4 core profits rise 1.3% on improved sales in France, Africa

Takeaway reports core profit in 2019, revenues up 79%

Capgemini Says Fy Net Profit Group Share Up 17% To EUR 856 Mln

Apart from earnings, there's no shortage of other corporate announcements:

France's Schneider Electric makes 1.4 bln euro offer to buy RIB Software

Airbus to buy rest of Bombardier stake in A220 passenger jet programme

Australia court approves $10 bln Vodafone-TPG merger, overrules regulator

Euronext says still analysing whether to bid for Madrid bourse

(Julien Ponthus)

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MORNING CALL: JUST A TAD LOWER FOR NOW (0621 GMT)

A jump in the number of deaths linked to the coronavirus outbreak has triggered some kind of strategic and limited retreat on Asian bourses overnight.

European and U.S. stock markets which had just hit new record on hopes the virus' spread might be slowing down are now expected to let some of these gains go at the open, futures show.

CMC Markets said the FTSE 100 is expected to open 21 points lower, the DAX to lose 14 points and France's CAC 40 to shed 4 points.

While futures for the main European benchmarks are down between 0.1% and 0.2%, there will be plenty of corporate earnings to drive sentiment one way of another.

(Julien Ponthus)

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(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)