LIVE MARKETS-Looking for "sunken treasure" among consumer staples

* European stocks futures head higher

* Oil prices on the rise

* Asian shares mostly firmer

Feb 26 (Reuters) - Welcome to the home for real-time coverage of European equity markets

brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on

Messenger to share your thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net

LOOKING FOR "SUNKEN TREASURE" AMONG CONSUMER STAPLES (0743 GMT)

Analysts at Jefferies are taking stock of "the most volatile earnings seasons in Euro

staples in recent memory", given that it's a sector which has been under pressure from the rise

in bond yields.

Jefferies say that earnings misses have been punished "severely", and single out British

American Tobacco, Diageo (LSE: DGE.L - news) , Heineken (LSE: 0O26.L - news) and Unilever (NYSE: UL - news) as their key

picks.

Sluggish growth on the topline and negative fx guidance surprises are some of the issues

Jefferies identify staples have faced, pointing to an average 3 percent decline for every 1

percent EPS downgrade, though the sector remains at a premium to the Eurostoxx.

"We have identified a number of names within consumer staples that have structural topline

growth opportunities, visibility on margin improvement, strong FCF generation, balance sheet

strength and reasonable dividend yields," analysts at Jefferies say in a note.

(Kit Rees)

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EUROPE'S EARLY MORNING HEADLINE ROUND-UP (0724 GMT)

Daimler (IOB: 0NXX.IL - news) in $2 bln China investment with BAIC as Geely swoops

Deutsche Bank (IOB: 0H7D.IL - news) announces listing of asset management arm DWS

Carmaker PSA, Malaysia's Naza sign deal to produce PSA cars for Asia

VW's profitability may take a hit from electric vehicle shift

Britain vows to cap "rip off" energy prices for millions with new law

UK's Bunzl (LSE: BNZL.L - news) 's 2017 profit jumps on help from deals, growth in America

Fiat Chrysler will ditch diesel from its cars by 2022 - FT

Primark-owner AB Foods first-half profit held back by sugar​

Underwriter Hiscox's FY profit slumps

Zurich Insurance (IOB: 0QP2.IL - news) buys QBE's Latam business for $409 mln

Nokia CEO sees big 5G rollouts nearly a year ahead of schedule

Geox (LSE: 0KHH.L - news) to keep up the pace in 2018 after return to profit growth

(Tom Pfeiffer)

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UP IT IS, FUTURES SHOW (0709 GMT)

Futures are confirming earlier indications from financial spreadbetters: European markets

are set to open in positive territroy this morning:

(Julien Ponthus)

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MORNING CALL: EUROPE SEEN OPENING HIGHER (0628 GMT)

European shares look set to rise at the open on Monday after ending a second week in

positive territory following the 6 month-low hit in the wake of the heavy sell-off early

February.

In Asia shares made guarded gains as investors braced for an event-packed week headlined by

U.S. inflation data and the first House testimony by the new head of the Federal Reserve.

Financial spreadbetters expect London's FTSE to open 32 points higher at 7276.8 points,

Frankfurt's DAX 81 points higher at 12564.9 points and Paris' CAC 23 points higher at 5339.9

points.

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(Julien Ponthus)