LIVE MARKETS-On the hunt for equity risk premia in Europe

* European shares little changed

* Geopolitical jitters keep investors cautious

April 16 (Reuters) - 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

ON THE HUNT FOR EQUITY RISK PREMIA IN EUROPE (0900 GMT)

As is clear in trading thus far today, equity investors are pretty un-fussed about the

U.S.-led strikes on Syria over the weekend. UBS (LSE: 0QNR.L - news) analysts this morning echo the view of many

investors we've been speaking to, saying:

"Underneath an often sweeping discourse on political and trade-related risks, investors have

not paid enough attention to a strong and - near term - binding macro backdrop."

Strong macro growth provides a cushion for equities especially in Europe, they say, pointing

to still handsome equity risk premia.

Euro zone stocks' equity risk premium is on average higher than the U.S., as you can see

below - as the post-crisis recovery has been slower with niggling issues with banks and balance

sheets. But it's been falling back as these issues fade, helped by the better economic backdrop.

"We believe there is space for risk premia to decline further," says UBS. To harvest higher

premia "investors need only go out the risk spectrum," they say, recommending long positions in

Greek bonds and Italian banks.

(Helen Reid)

*****

OPENING SNAPSHOT: CAUTION PREVAILING (0743 GMT)

European shares are only cautious up this morning as traders fear the missile strikes in

Syria could lead to a further escalation of tensions between of the U.S. and Russia.

There is however some relief that the well-telegraphed attack on Syria had been limited in

scale and Wall Street futures are trading in positive territory.

(Julien Ponthus)

*****

EUROPEAN STOCK FUTURES EDGE UP (0602 GMT)

European shares are set to open up slightly with stock index futures on main regional

benchmarks trading up 0.1-0.3 percent. The pan-European STOXX 600 index ended on Friday at a

4-week high, up 0.1 percent.

(Danilo Masoni)

*****

EARLY MORNING HEADLINE ROUNDUP (0556 GMT)

WPP (Frankfurt: A1J2BZ - news) embarks on new journey without Sorrell at the helm

ECB asks Deutsche Bank (IOB: 0H7D.IL - news) to gauge investment banking exit costs -source

Activist Elliott now largest shareholder in Whitbread

Adecco (Swiss: ADEN.VX - news) to buy U.S.-based General Assembly in deal valued at $412.5 mln

Software AG (IOB: 0NJS.IL - news) raises FY industrial internet sales outlook

Unilever (NYSE: UL - news) remuneration under fire from investor advisory firms

Sulzer (IOB: 0QQ9.IL - news) gets second licence unblocking assets frozen by U.S. sanctions

Spain's ACS (Amsterdam: SR6.AS - news) to help build and maintain Toronto light railway

Activist fund SVM takes stake in Italy's TIM, backs Elliott

Major Hammerson shareholder to vote against Intu (Swiss: OXIGTU.SW - news) acquisition

German minister to carmakers: Invest in electric cars or lose out

VW's new CEO may become Audi (IOB: 0FG8.IL - news) chairman in May -sources

Rolls-Royce to bid for engines for China-Russia wide body jet -China Daily

French spirits maker Marie Brizard warns of deeper loss in 2017

(Danilo Masoni)

*****

MORNING CALL: EUROPEAN SHARES SEEN CAUTIOUSLY HIGHER (0530 GMT)

European shares are seen opening higher although caution will dominate after the U.S.,

France and Britain launched missiles targeting what the Pentagon said were chemical weapons

facilities in Syria in retaliation for a suspected poison gas attack in Douma this month.

"The firing of over 100 cruise missiles over the weekend on various targets, with little in

the way of casualties, appears to be tempered with relief that while it may reduce the risk of

an escalation in the short term, it in no way means that we might not get a counter response

further down the line," said Michael Hewson, Chief Market Analyst at CMC Markets (LSE: CMCX.L - news) .

Financial spreadbetters expect London's FTSE to open 12 points higher at 7,276, Frankfurt's

DAX to open 72 points higher at 12,514 and Paris' CAC to open 22 points higher at 5,337.

Over in Asia, shares were mixed as relief U.S.-led strikes on Syria looked unlikely to

escalate was tempered by concerns at Russia's potential reaction to new sanctions from

Washington.

Russian President Vladimir Putin warned on Sunday that further Western attacks on Syria

would bring chaos to world affairs, as Washington prepared to increase pressure on Russia with

new economic sanctions.

(Danilo Masoni)

*****