LIVE MARKETS-European stock futures up as Italy government talks fail to shake the market

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EUROPEAN STOCK FUTURES UP AS ITALY GOVERNMENT TALKS FAIL TO SHAKE THE MARKET (0614 GMT)

Talks between Italy's anti-establishment 5-Star and the far-right League to form a

government don't seem to have investors too worried, with futures pointing to gains across

Europe's major benchmarks.

Italy's FTSE MIB has been one of the best-performing equity indices worldwide this year,

Goldman Sachs (NYSE: GS-PB - news) analysts note, while most of its European counterparts are flat.

"We think it is unlikely that investors will perceive Italian political developments as a

systemic threat to euro area institutions or growth, in the near term," they write.

Here's your snapshot:

(Helen Reid)

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EARLY MORNING EUROPEAN HEADLINE ROUND-UP (0553 GMT)

Analysts are getting their heads round the progress in Italian government talks. "A Five

Star/League coalition government is taking shape," note SocGen (Paris: FR0000130809 - news) analysts. "This was our

worst-case scenario three months ago. However, this government is unlikely to have enough

political and fiscal room for manoeuvre to deliver a large fiscal slippage, as indicated in the

two platforms."

But there's also plenty of results and other company news to keep traders and investors busy

today.

In what could be a big step for the nascent technology underlying cryptocurrencies, banks

HSBC and ING say they've performed the world's first trade finance transaction using

blockchain.

In other news, results and M&A - both inbound and outbound:

France's AccorHotels strikes deal to buy Chile (Stuttgart: 704599.SG - news) hotel group Atton

ABN Amro Q1 profit falls 3 pct on loan impairments

Innogy's Npower grows operating profit in Q1

K+S Q1 core profit rises 7 pct on rising volumes

HelloFresh Raises 2018 Revenue Growth Outlook

Bayer CFO sees lower Monsanto (Hamburg: 1132157.HM - news) synergies after divestments -Boersen-Zeitung

Ryanair target Laudamotion dumps Zurich flights due to plane shortage

China Three Gorges launches $10.8 bln bid for Portuguese power firm EDP

(Helen Reid)

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MORNING CALL: EUROPEAN STOCKS TO RISE ON FADING TRADE TENSIONS (0536 GMT)

European stocks are set to follow the Asian trend up this morning after last week ended on a

high. Progress in talks between Italy's Five Star and League towards forming a government don't

seem to have overly shaken the market, with the euro hardly moved.

Asian shares rose to near two-month highs on hopes U.S.-China trade tensions were thawing

after Trump pledged to help ZTE Corp (Xetra: A0M4ZP - news) "get back into business, fast" ahead of a second round of

trade talks between officials this week.

Italy's 5-Star Movement and far-right League called the head of state on Sunday to report on

their progress towards naming a prime minister. The two have been trying to find an independent

figure without allegiance to either party to rule the government.

Germany's DAX - which is very exposed to China and trade - is called up 29 points at 13,030,

the CAC 40 is seen opening 10 points higher at 5,552, and the FTSE 100 is expected to open 1

point lower at 7,723 points.

(Helen Reid)

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