LIVE MARKETS-Global stocks have become a value play

* European shares open higher

* STOXX 600 hits one-month high

* Focus returns to earnings

Nov 8 - Welcome to the home for real-time coverage of European equity markets brought to you

by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to

share your thoughts on market moves: josephine.mason.thomsonreuters.com@reuters.net

GLOBAL STOCKS HAVE BECOME A VALUE PLAY (1143 GMT)

UBS (LSE: 0QNR.L - news) is taking the plunge and upping its exposure to global equities, its CIO writes in a

note to clients, arguing strong economics and earnings data and low valuations more than

compensate for risks.

"Although we are mindful of the potential risks of adding to stocks against such a backdrop,

we believe the scale of the sell-off has been disproportionate," writes UBS' CIO Mark Haefele.

"The market may also be underestimating the potential for positive surprises," he adds.

Haefele sees stocks rising over a six-month horizon, and says though higher volatility is to

be expected, it's worth the risk.

"We believe that the value offered by global stocks justifies tolerating the potential for

higher volatility."

As you can see below, valuations of global stock indices have indeed come down substantially

over the past month and this year in general.

(Helen Reid)

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OPENING SNAPSHOT: IT'S ALL ABOUT EARNINGS (0842 GMT)

The good mood stemming from the U.S. midterm elections is helping equities in Europe extend

their recovery, as the focus quickly returns to a flurry of earning updates that so far hasn't

spoiled the party. The STOXX 600 is up around 0.7 percent at a one-month high.

"We believe the rally in cash equities and decline in implied equity volatility signals the

market welcomes reduced event risk after MidTerm elections that went in line with polls," says

Pierre Bose, head of European Strategy, IWM at Credit Suisse (IOB: 0QP5.IL - news) .

"More broadly though, we think European investors will quickly refocus on the remainder of

earnings season, economic data and the outcome of Brexit and Italian budget negotiations," he

adds.

In early deals, results were the main driver behind the top movers on the pan-European index

with Prosiebensat tanking 13 percent after cutting its dividend and outlook, and

Hikma rising 7 percent after it raised full-year revenue expectations for its

injectables division.

Good updates also lifted Banco BPM and Spie (Swiss: OXSPIE.SW - news) while Inmarsat (Other OTC: IMASF - news) was

down after its update.

And here's the STOXX at a one-month high:

(Danilo Masoni)

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EUROPEAN FUTURES POINT TO HIGHER OPEN (0757 GMT)

Futures for Europe's top stock markets are up 0.1 to 0.5 percent so far this morning, with

sentiment continuing to improve after the U.S. midterm elections and taking their lead from

Asia, where stocks hit their highest in a month.

Aside from a raft of earnings, UBS will likely capture headlines after Switzerland's largest

bank said it expects to be sued by the U.S. Department of Justice as early as Thursday on civil

charges related to the sale of mortgage-backed securities in the run-up to the 2008 global

financial crisis.

Other banks have settled charges, forking out between $765 million and $4 billion.

More bad news for chipmakers though, after Qualcomm (Swiss: QCOM-USD.SW - news) gave a weaker-than-expected sales

forecast for the crucial holiday shopping season, blaming the loss of chip sales to Apple (NasdaqGS: AAPL - news) .

That's likely cast a pall over semiconductor makers even after ASML (Milan: ASML.MI - news) raised its 2020 sales

forecast this morning.

Luxury goods are in focus after Italian luxury group Tod's reported a drop in nine-month

sales, with one dealer expecting shares to take a big hit. Burberry managed to beat analysts'

expectations for H1 revenue though.

Among other corporate news, there were better-than-expected earnings from SocGen (Paris: FR0000130809 - news) and

Commerzbank (Xetra: CBK100 - news) , another upbeat outlook from Deutsche Telekom (IOB: 0MPH.IL - news) , upbeat sales forecast from Ericsson (Hanover: ERCB.HA - news) .

SocGen shares are seen opening up 2 pct.

But Unicredit missed expectations due to a writedown, Sodexho, the world's No. 2 catering

company, has cautioned on the pace of its turnaround and HeidelbergCement (IOB: 0MG2.IL - news) has announced a

cost-cutting programme after its profit warning in October.

(Josephine Mason)

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HEADLINES ROUNDUP: UBS, SIEMENS (BSE: SIEMENS.BO - news) , COMMERZBANK AND SOCGEN (0721 GMT)

Earnings news so far this morning have been mixed: with solid results from Siemens,

better-than-expected earnings from SocGen and Commerzbank, another upbeat outlook from Deutsche

Telekom, upbeat sales forecast from Ericsson.

But Unicredit missed expectations due to a writedown, Sodexho, the world's No. 2 catering

company, has cautioned on the pace of its turnaround and HeidelbergCement has announced a

cost-cutting programme after its profit warning in October.

Aside from results, UBS will be in focus after it said it expects to be sued by the U.S.

Department of Justice as early as today on civil charges related to the sale of mortgage-backed

securities in the run-up to the 2008 global financial crisis. Shares (Berlin: DI6.BE - news) are seen opening down 1.4

percent.

Here are your latest headlines:

Commerzbank Q3 profit slides 53 pct but outlook unchanged

Siemens sees favourable market environment next year

French bank SocGen's Q3 profits rise faster than market expected

UBS expects to be sued by U.S. Justice Dept over crisis-era mortgage securities

Ericsson increases net sales target for 2020

Deutsche Telekom ups guidance again as U.S. unit performs

HeidelbergCement to cut costs, spending to counter U.S. woes

French company Sodexo cautions its recovery will take some time

Broadcaster ProSieben cuts payout ration, flags large one-offs

BHP to meet iron ore commitments despite train derailment-CEO

Veon's Q3 sales, core profit fall on currency fluctuations

Builder Skanska's order intake falls in Q3

Italy's UniCredit (EUREX: DE000A163206.EX - news) hit by writedown on Turkish unit's stake in Q3

Austrian bank BAWAG confident to exceed 2018 target

Generali (EUREX: 566030.EX - news) 9-mth net profits rise 27 pct to beat expectations

Zurich Insurance (IOB: 0QP2.IL - news) boosts 9-month revenue, storm losses continue

Hannover Re confirms 2018 profit guidance after Q3

Aker ASA Q3 net asset value rises to NOK 63.3 billion

Italy's Banco BPM sees core capital improve in Q3

ASIA, WALL STREET BOUNCE SEEN BOOSTING EUROPEAN EQUITIES (0629 GMT)

The rally overnight in Asia to one-month highs and gains on Wall Street on relief that the

U.S. midterm elections delivered no surprises are expected help lift European equities again

today, building on Wednesday's solid gains.

Earnings will likely also drive direction, with a slew of results due from heavyweights

AstraZeneca (NYSE: AZN - news) , SocGen, Natixis (LSE: 0IHK.L - news) and Commerzbank, Burberry, Sainsburys, Siemens, and telecom giants,

Deutsche Telekom and Telecom Italia (Amsterdam: TI6.AS - news) .

Financial spreadbetters IG (Frankfurt: A0EARV - news) expect London's FTSE to open 28 points higher at 7,145,

Frankfurt's DAX to open 76 points higher at 11,655 and Paris' CAC to open 27 points higher at

5,165. For the French index, that would be its highest since Oct (Shenzhen: 000069.SZ - news) . 18.

(Josephine Mason)

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