LIVE MARKETS-Fuel injection from Wall Street

* STOXX 600 up 0.8%, DAX up 1.2% * German carmakers rise after U.S. climbdown on Mexico tariffs * Basic resources stocks climb as copper rises on China demand hopes * Ted Baker plunges 28% after "extremely difficult" start to year June 11 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net FUEL INJECTION FROM WALL STREET (1420 GMT) Wall Street's strong open has added further fuel to today's equity rally, pushing the pan-European STOXX 600 to its day high and highest in more than three weeks driven largely by trade-sensitive miners and cars which are hitting their highest in weeks. Miners are up almost 3%, on course for their best day since April 1 as investors appear to be putting some gloss on the potential for progress in trade talks between Trump and Xi at the G20 meeting at the end of the month. It's a pretty impressive recovery from the sell-off that swept markets early last week after U.S. President Trump threatened tariffs on Mexican imports - aside from a small drop on Thursday, the STOXX 600 has risen for the last six days. The chart below shows they're still well below this year's peaks seen in April before Trump renewed his challenge to China in the tariff war, triggering the rout in May across financial markets. "Even if the two do have a sit-down discussion, the best outcome that can be hoped for is the resumption of a previous ceasefire. This would simply return the state of play to where it was before developing consensus collapsed in May," says Ken Odeluga, market analyst at City Index. (Josephine Mason) ***** THE GOOD NEWS AND THE BAD NEWS (1224 GMT) BlackRock's crack research team recently went on a field trip to China to take the pulse on corporate sentiment and the potential impact on global manufacturing supply chains in the world's No. 2 economy from escalating trade tensions with the United States. In their conclusions from the trip, the good news is that a "no deal" scenario in the ongoing trade negotiations, which would see U.S. slap full tariffs on Chinese imports, would have limited direct economic impact on the Chinese economy. Beijing, Blackrock believes, has the tools to cushion the blow. But the bad news: the senior research team says the more pressing concern is what the escalating tensions imply for the sustainability of global supply chains - and for both Chinese and global companies that rely on them. "Some global companies with large supply chains in China are not going to wait for the next turn in U.S.-China trade negotiations," says the report, noting signs of migration already underway with dramatic wage increases in neighbouring, poorer Vietnam as manufacturing jobs relocate there. Adjusting supply chains is a costly affair that companies may have to grapple with for years ahead, BlackRock says. In addition, U.S. firms supplying Chinese customers face a potential loss of revenues, and China's move toward greater self-reliance – from the tech sector to energy and food production – is likely to accelerate. Suffice to say, the rising U.S.-China rivalry is casting a cloud over China's growth outlook - BlackRock notes that selling of Chinese equities by foreign investors hit record highs in April and May, with the greatest outflow of foreign capital since the launch five years ago of the "stock connect" programme that gave global investors access to Chinese shares through Hong Kong. This chart shows China's cooling economic growth as the trade dispute has escalated over the past year: (Josephine Mason) ***** WHO GAINS FROM GREENING THE ECONOMY? (1139 GMT) Between the U.S. "Green New Deal" and Britain's "Extinction Rebellion" movement prompting parliament to declare a "climate change emergency", activism and government commitments around climate change have grabbed a lot of headlines recently. But investors and economists are still trying to weigh the impact of a massive shift towards a less carbon-intensive world. Greening advanced industrialised economies is going to involve significant reallocations of capital between and within sectors - depending on how innovative and specialised companies are already - which will in turn impact individual countries differently. "The transition towards clean technology is likely to exacerbate the dispersion of output and employment across countries within Europe," write Goldman Sachs economists. That's the conclusion they drew after calculating a score for each country based on the relative share of "green" patents in each sector by country - a proxy for innovation - as well as the degree of specialisation in each sector. "Germany and France look well-placed to prosper, whereas Italy and the UK have a higher incidence of industries under threat [from decarbonisation]," they argue. That's partly because France has stringent environmental policies making its transport system more "green", and Germany's status in the car industry means it benefits from green innovations made there. Meanwhile the prevalence of the apparel industry in Italy and the aircraft industry in the UK drag those countries' scores down. Indeed, Britain's finance minister Philip Hammond said on Friday that Britain cannot put off reducing greenhouse gas emissions but must be aware of the 1 trillion pound cost to the economy. (Helen Reid) ***** GERMANY: A RECESSION JUST AROUND THE CORNER? Sentix, the provider of sentiment analyses, says its index of investor morale for Germany has slid back into negative territory for the first time since March 2010. "A recession is therefore just around the corner," says Sentix managing director Manfred Huebner, based on a survey of 906 investors from June 6 to June 8. The research group says it's a double blow for the German economy with US-China trade dispute weighing on the export-oriented economy, while rising talks about climate change raises questions about the economy's main engine, the auto industry. And the expectations for the euro-zone is also sliding with hopes dying for a recovery. Sentix warned that investors are "significantly reducing their expectations". (Thyagaraju Adinarayan) ***** "THIS TIME COULD BE DIFFERENT" (0845 GMT) European stocks are now up 4% from their low hit on June 3 - that's a strong rally especially considering all the worries we're hearing about a potential recession. The driver is universally acknowledged to be the Fed which was interpreted as saying it's prepared to cut rates - but it remains to be seen how long this boost from central bank support will last. "While equities will normally enjoy a low rate environment, this time could be different," says a trader. "The oversold bounce will prove short-lived," he argues, "and we could see a turn back toward value away from growth as the pain trade along the way as investors reassess the outlook even with policy easing." (Helen Reid) ***** OPENING SNAPSHOT: MINERS, AUTOS RALLY; NOVO NORDISK JUMPS, TED BAKER SINKS (0720 GMT) European stocks open higher and are set for a three-day winning streak as trade-sensitive mining and auto stocks continue to rise. German autos among top boosts as exchanges open after a long weekend to trade on U.S.-Mexico deal. VW rises 2%. Novo Nordisk jumps 5% after data from competitor Eli Lilly's diabetes drug on cardiovascular outcomes was seen underwhelming -- Jefferies sees this as a minor positive for Novo Nordisk. Barclays upgrades to "equalweight". "Based on what we have seen so far we believe Novo's data are in line with expectations while Lilly’s data have been underwhelming/disappointing," Credit Suisse says. German biotech firm Evotec jumps 3% after it receives $23.8 million grant from Bill & Melinda Gates Foundation for TB Therapies. In the UK, Ted Baker slumps 26% on another profit warning after "extremely difficult" start to 2019. London's FTSE 100 is on track for a 7-day winning streak boosted by a rally in mining stocks. (Thyagaraju Adinarayan) ***** WHAT'S ON THE RADAR: GERMAN CARS, SWISS PHARMA, TED BAKER (0622 GMT) European stock futures rise marginally, extending gains from yesterday, as German and Swiss markets open for business after a long weekend. German auto stocks BMW, Daimler and VW are seen rising 1-1.5% after Washington dropped tariff threat on Mexican imports. In the UK, Fashion retailer Ted Baker seen down 10-20% as it warns on annual profit after a "challenging" start to 2019. More troubles in fashion? AIM-listed fast-fashion retailer Quiz also seen tanking more than 20% after a significant drop in profits. Deutsche Bank shares may take a hit as credit ratings agency Fitch downgrades the bank's long-term issuer default rating to BBB citing the lender's difficulty in improving its profitability. While, rival Commerzbank seen 1.2% lower after reports that Dutch lender ING Groep decided against a tie-up with the German bank. German biotech company Evotec seen 1-3% higher after it receives $23.8 million grant from Bill & Melinda Gates Foundation for TB Therapies In the Swiss world, Roche shares seen slightly higher after FDA grants earlier-than-expected approval to antibody-drug conjugate Polivy for treatment of patients with advanced lymphoma. Analysts estimate Polivy sales at nearly $1 billion by 2024. Smaller rival Cosmo Pharma's shares seen 3% higher after U.S. FDA accepts new drug application for the Swiss company's Remimazolam, an ultra-short-acting intravenous benzodiazepine sedative. Key headlines: Roche's combo lymphoma treatment wins U.S. FDA approval Siemens receives 1 bln euro order from Russian Railways Air France KLM's May passenger numbers rose 3.3% from last year Roche reshuffles board, executive posts ING will not pursue Commerzbank tie-up - Handelsblatt Ted Baker profit forecast low after "challenging" start to 2019 Crest Nicholson reports lower first half profit British caterer Compass to acquire Fazer Food Services (Thyagaraju Adinarayan) ***** EUROPEAN SHARES SEEN SLIGHTLY HIGHER (0532 GMT) European stocks are seen slightly higher taking cues from Asia, and as U.S.-Mexico deal continues to boost investors' sentiment. Financial spreadbetters IG expect London's FTSE to open 8 points higher at 7,384, Frankfurt's DAX to open 70 points up at 12,116, and Paris' CAC to open 4 points lower at 5,378. Rally in Asian stocks is led by Chinese shares which jumped 1.7% after the country said it will allow local governments to use proceeds from special bonds as capital for major investment projects. "European markets got off to a positive start to the week... however the gains were limited by concerns over the durability of the US's immigration deal with Mexico, as well as the prospect that we could see tariffs go on the remaining $300bn of Chinese goods by the end of the month," Michael Hewson at CMC Markets says. (Thyagaraju Adinarayan) ***** (Reporting by Danilo Masoni, Helen Reid, Josephine Mason and Thyagaraju Adinarayan)