LIVE MARKETS-Europe to steady near 2-week high as earnings roll in

* European shares seen pausing after rally

* Earnings in focus

* Deutsche Bank posts 3.15 bln euro Q2 loss

* Eyes on PMIs ahead of tomorrow's ECB meeting

* Signs of progress in trade talks support Asian shares 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

EUROPE TO STEADY NEAR 2-WEEK HIGH AS EARNINGS ROLL IN (0658 GMT)

European shares are expected to open flat to slightly lower after hitting over two-week highs in the previous session, in another heavy day for earnings updates and with the immediate focus turning to the release of PMI data before tomorrow's ECB meeting where the central bank is expected to prepare the ground for a rate cut in September.

Futures on main country benchmarks are all lower except for Spain's IBEX which are flat.

After strong gains in the previous session on the back of solid updates from Santander and UBS, banks are set to be weighed down after Deutsche Bank posted a larger-than-expected loss of 3.15 billion euros ($3.5 billion) in the second quarter due to major restructuring costs. DB shares are down 4.7% in early Frankfurt trade.

In autos, Daimler shares are up 0.9% in early Frankfurt trade as the luxury car maker said it would intensify cost cuts after legal risks for diesel-related issues and the cost of replacing Takata airbags triggered a 1.56 billion euros loss before interest and taxes in Q2. Earlier this month, Daimler pre-released earnings in what amounted to its fourth profit warning in 13 months.

In France, PSA Group delivered a sharp increase in H1 profit, as new models and the integration of Opel-Vauxhall more than made up for weaker emerging-market sales. Traders see PSA shares rising 1-3% at the open.

Aston Martin has however cut its 2019 forecasts on UK, Europe weakness and Japan's Nissan is planning job cuts of more than 10,000, the latest bad news from the troubled sector.

Following a strong update from Apple supplier AMS on Tuesday, chipmakers could find further support after Texas Instruments Q2 earnings and sales beat estimates, soothing demand jitters and sending its shares up sharply.

In Europe, Dutch semiconductor supplier ASM International reported a 25% increase in Q2 revenue, beating expectations, driven by its logic chips and fabrication business. Fresh signs of progress in Sino-US trade talks are also helping chips and other trade exposed sectors.

Shares in Covestro are rising 1.8% in early trade after the chemicals maker confirmed its FY core profit outlook, saying it met its Q2 targets despite challenging global economic conditions.

A solid update also from paints and coatings maker Akzo Nobel posted a better-than-expected 36% jump in Q2 core profit, as higher prices and cost savings offset raw material inflation.

In other encouraging earnings news, Swiss drug ingredients maker Lonza Group confirmed FY targets, lifting its shares 1.1% premarket, even though H1 profit plunged as it took losses linked to the sale of its water business and as difficulties at its specialty ingredients business continued.

Telefonica Deutschland also rose in early Frankfurt trade after results.

In dealmaking and share moves, Hugo Boss shares are down 2.8& in early trade after a share placement from shareholder Xinglee, while Metro is down 2.7% in premarket after it recommended its shareholders not to accept a takeover offer by EP Global Commerce.

Other stock movers:

Clariant CEO exits after 10 months amid key talks with SABIC

Love Island delivers for ITV in tough ad market

UK chemicals firm Croda unit hit by U.S.-China trade war

Spain's Iberdrola boosts profit forecast as H1 earnings rise

T-Mobile parent Deutsche Telekom schedules meeting as Sprint deal nears approval - report

Tullow Oil restores dividends with $33 mln payout

KPN core profits gain despite network outage, CEO exit

Skanska Q2 operating profit above forecast

(Danilo Masoni)

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HEADLINES ROUNDUP: EARNINGS, EARNINGS, EARNINGS (0554 GMT)

Turning to the corporate front, it's all about earnings updates this morning.

Deutsche Bank posted a Q2 loss of 3.15 billion euros as a result of costs for a major restructuring, while Daimler said it would intensify cost cuts after legal risks for diesel-related helped trigger a 1.56 billion euros loss before interest and taxes in Q2.

The impact of these updates may partly be price in already as DB had already indicated the magnitude of its loss when it announced its restrucuring earlier this month, while Daimler pre-released earnings earlier this month in what amounted to its fourth profit warning in 13 months.

In more upbeat releases, paints and coatings maker Akzo Nobel posted a better-than-expected 36% jump in Q2 core profit, as higher prices and cost savings offset raw material inflation, while chemicals maker Covestro confirmed its FY core profit outlook, saying it met its Q2 targets despite challenging global economic conditions, competitive pressures and weakness in the automotive industry.

In autos, PSA Group delivered a sharp increase in first-half profit, as new models and the integration of Opel-Vauxhall more than made up for weaker emerging-market sales.

Here are other headlines that may move markets this morning:

Lonza H1 profit plunges, says on track to hit full-year goals

KPN core profits gain despite network outage, CEO exit

Sulzer raises full-year sales outlook after seeing no signs of slowdown

EFG reports increase in assets under management in H1

Skanska Q2 operating profit above forecast

Clariant CEO exits after less than a year on the job

TIM to announce towers deal, 5G partnership with Vodafone on July 26 - source

(Danilo Masoni)

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EUROPE SEEN HIGHER AHEAD OF PMI DATA (0530 GMT)

European shares are set for a stronger open in another heavy day for earnings updates and with the immediate focus turning to the release of PMI data later on ahead of tomorrow's ECB meeting where the central bank is expected to prepare the ground for a rate cut in September.

Following slight gains in Asia overnight on hints of progress in the Sino-U.S. trade saga, spreadbetters at IG expect London's FTSE to open 8 points higher at 7,565, Frankfurt's DAX to open 46 points up at 12,537, and Paris' CAC to open 12 points higher at 5,630.

A disappointment on the PMI front, however, could erode possible gains.

"Today's flash manufacturing and services PMIs from France and Germany could prompt further weakness this morning if the weakness seen in the manufacturing numbers in recent months starts to bleed into the services sector," says Michael Hewson, analyst CMC Markets.

In corporate news, Deutsche Bank posted a Q2 loss of 3.15 billion euros as a result of costs for a major restructuring, while Daimler said it would intensify cost cuts after legal risks for diesel-related helped trigger a 1.56 billion euros loss before interest and taxes in Q2.

Later in the day the focus will shift to earnings from Wall Street companies of the caliber of Facebook, Caterpillar, and Boeing.

(Danilo Masoni)

***** ($1 = 0.8968 euros) (Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)