LIVE MARKETS-More on earnings

* European shares seek floor after heavy two-day sell off

* STOXX 600 rebounds after hitting April 1 low, now up 0.1 pct

* Siemens steals show with gas spin off and strong results

* Defensives come under pressure after gains, banks up slightly

May 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

MORE ON EARNINGS (0853 GMT)

More signs that Q1 earnings in Europe are improving: Refinitiv I/B/E/S has revised upwards

its Q1 earnings forecast for the first time since late February.

Analysts on average now expect Q1 earnings per share for STOXX 600-listed companies to fall

3 percent, up sharply from a drop of 4.2 percent last week, according to the latest I/B/E/S data

from Refinitiv released last night. That compares with 4.3 percent growth a year ago.

As in previous blogs and stories, this highlights just how low expectations were heading

into the results season. Also see last week's blog: Europe's rallying but analysts are still

cutting Q1 estimates.

Still, the cheerier-than-expected results may help shore up confidence as investors continue

to fret about the U.S.-China trade conflict.

Consensus for the MSCI Europe continues to improve too, with a 4.6 percent drop expected in

Europe, up from a 4.8 percent decline last week, although the region's still on track for the

slowest pace of earnings growth in three years as this chart shows:

(Josephine Mason)

MEANWHILE, EARNINGS CONTINUE TO BEAT... (0814 GMT)

Trade angst and Brexit uncertainty are helping stocks start May on a backfoot but corporate

profits continue to beat expectations, and that points to a return of earnings momentum, a

welcome development for investors even though the bar had been lowered quite a bit.

Here's the latest take on the European earning season from Morgan Stanley.

"1Q has seen the strongest breadth of earnings beats in two years, but much of this reflects

earnings expectations coming down dramatically ahead of results. Earnings are tracking down 5%

year-on-year in 1Q, but we see increasing signs of stabilisation in FY19 estimates," they say.

A similar trend of earnings stabilisation has also been detected for world stocks, as we

pointed out in this blog yesterday: Wanna bet: world stocks at record highs by summer 2020?

Also see our story from last week that checks in on earnings halfway through the season:

ANALYSIS-Half-time: Europe Inc scores to avert Q1 disaster, hopes of a rebound rise

(Danilo Masoni)

*****

OPENING SNAPSHOT: TRADE TENSIONS PRESSURE EUROPE AGAIN (0725 GMT)

Pan European STOXX 600 index is under pressure in early deals hitting the April 1

lows touched yesterday as investors continue to fret about escalating tensions between China and

the U.S. and the threat of more tariffs on Chinese imports as the world's top two economies

embark on last-ditch talks to salvage trade spat.

The insurance index is the worst performing sector, down 0.8 percent, dragged lower

by Munich Re which is down nearly 2 percent after reporting a drop in net profits due to higher

claims.

Star performer is Germany's DAX, up 0.2 percent and outperforming its peers, as Siemens

leads the charge higher after better-than-expected results and announcing plans to spin off its

struggling gas and power business followed by Wirecard which is up 2.6 percent after its

results.

Top three fallers on the STOXX 600 - Lufthansa, Siltronic and Hochtief - are all ex-div.

(Josephine Mason)

*****

EUROPEAN FUTURES SIGNAL SUBDUED OPEN (0632 GMT)

European futures are indicating a subdued open this morning after the pan-European STOXX 600

hit more than one-month lows yesterday as investors continue to fret about renewed tensions

between China and the United States over their prolonged trade spat as the world's top economies

embark on last-ditch talks to salvage a deal.

China's trade data for April was a bit of mixed bag with higher imports bolster some

confidence about domestic demand, although falling exports may stir concerns about U.S. trade

deficit.

In data closer to home, German industrial output rose unexpectedly in March, offering a

glimmer of hope for Europe's biggest economy.

There's plenty of earnings and dealmaking to keep investors occupied as well.

Siemens may steal the show after saying it will spin off its gas and power business, which

has dragged on the engineering firm's performance with the rise of renewable power, as the

German industrial giant announced better-than-expected Q2 profit from its industrial business.

Its shares are up 2.4 percent in early Frankfurt trade.

Munich Re has reported a drop in net profits due to higher claims, sending its shares down 2

percent in early trade, while Italy's biggest insurer Generali says it is looking at small and

medium-sized insurance companies in Europe to strengthen its presence in the region.

Elsewhere in financial services, Commerzbank has reported a 54 percent drop in Q1 net profit

blaming a higher tax burden, but the result was better than expected and the bank forecast

higher underlying revenues for 2019.

Another big mover in early trade is Wirecard which is up 2.2 percent after raising its 2019

outlook, as the German payments company shook off allegations of fraud and false accounting to

post a 40.7 percent increase in core profits in the first quarter.

Imperial Brands may get a lift after standing by its FY forecast and delivering higher

half-year results. Supermarket operator Ahold Delhaize said higher Q1 net income was lifted by

upbeat growth in online sales and the Netherlands, but reiterated 2019 margins will be slightly

lower than last year.

After better than expected results from U.S. chip equipment maker Qorvo overnight,

semiconductors will remain in focus amid a slew of recent results. Underscoring industry

concerns about sluggish global demand, Toyota Motor has forecast lower growth in operating

profit for the current year on an expected drop in revenue and weaker vehicle sales in Japan and

North America.

Here's the early harvest of headlines:

Siemens spins off struggling gas and power in smart digital shift

Siemens posts stronger than expected industrial profit

Mortgage litigation claims could hit Spanish bank results - Bank of Spain

Commerzbank Q1 net profit falls on higher tax burden

Scandal-hit Steinhoff posts $4 bln operating loss for fiscal 2017

Ahold Q1 earnings rise, roughly in line with estimates

Deutsche Bank to ISS: "We have improved our risk system"

Ex-Danske CEO Borgen charged over money laundering case -report

Generali targeting European small and medium insurers

German prosecutors aim to fine UBS over alleged help in client tax evasion

Osram posts 56 pct drop in EBITDA in Q2, cites challenging environment

Wirecard lifts 2019 guidance after strong Q1

Munich Re Q1 net profit down 23 percent on higher claims

Here's your snapshot:

(Josephine Mason)

*****

EUROPE ON THE BACKFOOT AGAIN (0518 GMT)

With April's gains wiped off the STOXX 600 in just four days of trading this month,

worries about the tense U.S.-China trade talks and the U.S. threat of more tariffs on Chinese

imports are expected to inflict more pressure on European stocks this morning.

Asia markets have tracked losses on Wall Street overnight, falling back sharply as investors

digest China's latest trade data for April, which was a bit of a mixed bag.

Financial spreadbetters IG expect London's FTSE to open 9 points lower at 7,251, Frankfurt's

DAX to open 6 points lower at 12,087, and Paris' CAC to open 3 points lower at 5,392.

(Josephine Mason)

*****

(Reporting by Danilo Masoni, Helen Reid, Josephine Mason and Thyagaraju Adinarayan)