LIVE MARKETS-What you need to know at the open

* European shares seen opening higher

* China and US 'very close' initial trade deal - Global Times

* LVMH agrees $16.2 bln deal for Tiffany, Novartis buy U.S. biotech firm

* Asia shares find footing as mood swings on trade 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

WHAT YOU NEED TO KNOW AT THE OPEN (0752 GMT)

The positive noise on trade talks and big transatlantic M&A activity in luxury and healthcare are set to dominate the session in Europe today with stock futures pointing to solid gains at the start, up as much as 0.7%.

Luxury stocks will be on the watch-list after LVMH reached a definitive agreement to buy U.S. jewellery chain Tiffany & Co in a $16.2 billion deal that is the largest takeover ever the acquisitive French group. One trader sees LVMH and the whole sector rising as much as 2% at the open.

Meantime, Novartis agreed to buy U.S. biotechnology company The Medicines Co for about $9.7 billion, as it seeks to expand its portfolio of medicines against cardiovascular disease. Novartis shares however were down 3.2% in premarket trade.

Elsewhere more deal-making is taking place.

Debt-ridden telecoms company Altice said it would buy French fibre wholesale operator Covage for around 1 billion euros, while freshly privatised French lottery operator FDJ agreed to buy software publisher Bimedia.

Shares in Prysmian are expected to get a nice boost (up 3-10%) after its troubled Western Link high voltage connection was taken over by clients.

Eyes also on Italian toll road operator SIAS after a bridge on one of its highways collapsed on Sunday following a massive landslide. No casualties were reported.

The renewed optimism over trade is likely to support trade-sensitive sectors like autos.

Other stock movers: AMS shareholder Temasek backs plans for Osram takeover; Just Eat advises shareholders not to accept Prosus offer ; Sika to buy Romanian mortar maker Adeplast; UniCredit confirms talks with Koc over Turkey JV; French property group Icade raises net current cash flow guidance for 2019

(Danilo Masoni)

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TRANSATLANTIC M&A ACTIVITY ON OUR RADAR (0647 GMT)

Turning to the corporate news front there are a couple of transatlantic M&A deals that will likley steal the show this morning.

Sources said on Sunday that LVMH was close to buying U.S. jewellery chain Tiffany & Co for about $16.3 billion after sweetening its offer, in a deal that could be announced today.

Also on Sunday, Novartis said it was buying U.S. biotechnology company The Medicines Co for about $9.7 billion.

Elsewhere, some minor dealmaking is taking place:

French lottery group FDJ buys software company Bimedia

Sika to buy Romanian mortar maker Adeplast

(Danilo Masoni)

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MORNING CALL: UP ON POSITIVE TRADE NOISE (0632 GMT)

European shares are expected to open higher this morning following gains in Asia overnight on renewed optimism over a possible trade deal.

Spreadbetters at IG expect London's FTSE to open 24 points higher at 7,351, Frankfurt's DAX to open 74 points higher at 13,238 and Paris' CAC to open 25 points higher at 5,919.

A U.S. official said over the weekend that an initial trade agreement with China was still possible by the end of the year after Chinese President Xi Jinping and U.S. President Donald Trump both underscored their desire on Friday to sign a deal.

Meantime, the Global Times said earlier today that China and the United States were 'very close' to a phase one trade deal.

Later in the day, the German IFO business survey will be watched, while dealmaking is also likely to be a focus after sources said LVMH is close to buying U.S. jewellery chain Tiffany & Co for about $16.3 billion after sweetening its offer.

(Danilo Masoni)

***** (Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)