LIVE MARKETS-May Day: has anything changed?

* European shares seen higher for third straight day

* FTSE set for flat open

* May survives confidence vote but Brexit deal still teetering

* ECB meeting in focus

Dec (Shanghai: 600875.SS - news) 13 - 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

MAY DAY: HAS ANYTHING CHANGED? (0715 GMT)

The PM survived the confidence vote last night, but it wasn't quite the firm affirmation she may have needed as she heads to Brussels today to seek reassurances on her Brexit deal. Does the result really change anything?

Goldman's Brexit base case is broadly the same following the vote and Credit Suisse (IOB: 0QP5.IL - news) agrees - it's keeping its neutral stance on equities and reckons the result reinforces expectations for a soft Brexit.

While the basic constraints on the specifics of the deal - the limited scope for renegotiation with the EU - haven't gone away, Goldman analysts say the victory may embolden her attempt to resist opposition in her own party to compromises in the Withdrawal Agreement.

But the political instability that has punished UK stocks this year - the blue chips and midcap index are both on track for their worst year since 2008 - hasn't disappeared with the vote. On Tuesday, BlackRock (Sao Paolo: BLAK34.SA - news) suggested that Chinese equities may even be a better bet given the country's tortured divorce from the EU.

Investors may not be rushing back into the market in droves.

The FTSE 100's exposure to international markets, with 70% of its income from abroad, may stand it in better stead to withstand some of the jitters. But the market may move on pretty quickly, with investors choosing instead to focus on easing U.S.-China trade tensions.

Take the pound: after bouncing off 20-month lows ahead of the vote, it's now down slightly this morning, a sign that traders are nervously looking ahead to the Brexit vote in January.

(Josephine Mason)

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HEADLINES ROUNDUP: EYES ON ERICSSON, NOKIA (Milan: 23568.MI - news) , PANAMA CANAL BUILDERS (0553 GMT)

While the broader market direction is likely to be driven by macro factors (Brexit/trade and Italy budget), with investors also keeping an eye on today's ECB meeting, there is some corporate news that could liven up the session.

On the watchlist are Ericsson (Hanover: ERCB.HA - news) and Nokia after a report said SoftBank (Swiss: SOFB.SW - news) plans to replace equipment from China's Huawei with hardware from the two European vendors.

Sacyr (LSE: 0OFU.L - news) and Salini Impregilo may come under pressure after an arbitration tribunal ordered the Panama canal construction consortium they are part of to pay back nearly $848 million. A big loss at no dividend at GAM Holding (IOB: 0QN3.IL - news) could also weigh on the Swiss asset manager.

Here's your headlines round up:

* Japan's SoftBank to shun Huawei in favour of Ericsson, Nokia equipment -Nikkei

* MEDIA-Huawei pledges to do 'anything' to soothe security concerns- FT

* Tribunal orders Panama canal construction group to pay back $848 mln

* Swiss asset manager GAM sees big 2018 loss, omits dividend

* Australian regulator casts doubt on tie-up between Vodafone's local arm and internet provider TPG (Taiwan OTC: 6521.TWO - news)

* J&J says its psoriasis drug superior to Novartis (IOB: 0QLR.IL - news) treatment in study

* Saipem (LSE: 0NWY.L - news) says Shamoon variant crippled hundreds of computers

* Nissan to boost external board seats, set up compensation committee -source

* ChargePoint to equip Daimler (IOB: 0NXX.IL - news) dealers with electric car chargers

* U.S. tribunal to review ruling on Qualcomm (Swiss: QCOM-USD.SW - news) request for iPhone ban

(Danilo Masoni)

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FTSE SEEN FLAT AS MAY SURVIVES CONFIDENCE VOTE (0620 GMT)

European shares are expected to open higher this morning on the back of easing Sino (Dusseldorf: 1205802.DU - news) -US trade tensions and hopes of a compromise over Italy's contested budget, although the UK's FTSE is set to lag behind as uncertainty over Brexit continues.

British Prime Minister Theresa May survived yesterday's confidence vote by the Conservative Party, but a mutiny by more than a third of her lawmakers indicated parliament was heading towards deadlock over the country's divorce from the European Union.

"The 117 dissent votes coupled with the DUP and the opposition, add up to a clear majority against May’s deal and if her deal fails in Parliament eventually, a no-confidence motion in Parliament remains probable outcome," says Stephen Innes, Head of Trading APAC at OANDA.

Financial spreadbetters IG (Frankfurt: A0EARV - news) expect London's FTSE to open 1 point higher at 6,881, Frankfurt's DAX to open 33 points higher at 10,963 and Paris' CAC to open 10 points higher at 4,919.

(Danilo Masoni)

***** (Reporting by Danilo Masoni)