LIVE MARKETS-Now, about the bigger picture

* European stocks rise

* Autos rise on hopes of suspension of U.S. tariffs threat

* Sodexo jumps after Q3 sales update

* U.S. tariffs on Chinese imports to go into effect on July 6

LONDON, July 5 (Reuters) - Welcome to the home for real-time coverage of European equity

markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on

Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net

NOW, ABOUT THE BIGGER PICTURE (1330 GMT)

With European markets now firmly in positive territory despite the overnight gloom from

China, now is perhaps a good time to take a step back from the day-to-day trade war swings and

look at the bigger picture.

As many investment houses have stressed in their mid-year outlook, things don't look that

bad for global growth in general and European equities in particular.

"Despite markets being more volatile than in 2017, our base case scenario remains one of

robust global growth and contained inflation," BNP Paribas wrote in its quarterly note on asset

allocation.

"This underpins our bullish view on equities, with a preference for Euro zone equities where

we see positive earnings growth prospects and room for margin expansion," the French bank's

analysts said, adding that their "optimistic roadmap" took into account "political risk, trade

protectionism and softer global growth."

Anyhow, according to BNP Paribas, European equities is the place to be:

(Julien Ponthus)

*****

ZERO AUTOS TARIFFS - A DARING THOUGHT (1234 GMT)

It's good to look on the bright side of life, and Gary Paulin, head of global equities at

Northern Trust Capital Markets, has explored the intriguing - if "unlikely" - scenario of a zero

tariff world for autos stocks.

Paulin writes that, if the offer from the U.S. ambassador to German car chiefs also included

trucks, then this would benefit Daimler the most as trucks attract higher tariffs

than cars.

But it could be painful for anyone caught on the wrong side of the tariff trade if it all

ultimately amounts to nothing.

"While the prospect of ZERO tariffs seems unlikely, the market seems to have under-priced

that probability such that any softening away from hard line trade wars toward something else

could be painful for those underweight/short," writes Paulin.

(Kit Rees)

*****

TRADE: "THE NOISE HAS GOTTEN HARDER TO IGNORE" (1041 GMT)

That what Joseph Amato, president and CIO – equities at Neuberger Berman says about the

trade spat between the U.S. and China.

But even so Amato, along with other investors, isn't expecting there to be a full-blown

trade war situation.

"Risks are rising from this game of chicken. Markets are not yet ready to trust the Trump

administration on trade negotiations. The next few months will be a vital proving period for

that trust, during which the noise and anxiety are likely to increase. We still believe the two

biggest players are likely to swerve from their collision course and avoid a truly damaging

outcome," says Neuberger Berman's Amato.

Larry Lau, manager of the Trium Diversified Macro Fund, sees more volatility in the

near-term and a "strong reaction as markets sniff a resolution."

For now, stocks appear quite happy to hope that some kind of resolution is on the cards,

though trading could remain choppy in the meantime.

(Kit Rees)

*****

EARLY SNAPSHOT: EUROPEAN STOCKS IN POSITIVE TERRITORY (0747 GMT)

Following a flat start to the session, European stocks have accelerated gains thanks to a

boost from autos, which are the top-gaining sector following a report that the U.S. has offered

to suspend threats to impose tariffs on cars from the European Union.

However, trading could remain choppy ahead of tomorrow when U.S. tariffs on Chinese goods

are set to go into effect.

Here's your early snapshot:

(Kit Rees)

*****

WHAT WE'RE WATCHING AHEAD OF THE OPEN (0637 GMT)

It's set to be a quiet session for European shares with futures pointing to a broadly flat

start ahead of tomorrow's deadline for U.S. tariffs on $34 billion of Chinese imports to go into

effect.

The uncertainty over global trade has meant that stocks have been pretty rangebound this

week, and are set to end the week unchanged following two weeks of straight losses.

While the Q2 earnings season is still a little while away, a number of British companies

have given various updates including housebuilder Persimmon, Primark owner AB Foods and

Superdry, the latter two which will provide further evidence as to the health of the UK high

street.

Here are this morning's key headlines:

France's Sodexo keeps goals despite weaker Q3 sales

Persimmon's revenue rises 5 pct on higher sales, prices

Primark owner AB Foods maintains full-year profit guidance

Glencore announces $1 bln share buyback

Superdry posts double-digit growth in FY revenue, pretax profit

US offers German car bosses 'zero tariffs' solution to trade row-Handelsblatt

Airbus CEO says expects results from CSeries deal in time for Farnborough

Airbus CEO worried US trade dispute escalation could impact air traffic

Italy's Generali to sell 89.9 pct of German life insurance portfolio to Viridium

WPP warns Sorrell he could lose payout over M&A clash - source

Proxy advisor ISS backs Premier Foods in battle with Oasis

Thyssenkrupp, Tata Steel may need asset sales to get EU nod for JV

FOCUS-Bar by bar, Heineken battles AB Inbev in Brazil

Content-hungry bidders circle 'Big Brother' maker Endemol

Britain's Lloyds offers $100 million so far to HBOS fraud victims

Britain's JLR says 'bad Brexit' would mean it could not stay in UK

SBM Offshore: Brazilian court orders Petrobras to withhold some

payments

India's Future Lifestyle Fashions to invest about 1.40 bln rupees in Koovs

GRAPHIC-Trade war could hurt these economies far more than U.S., China

Investors demand 500 companies disclose more data on employees

German industrial orders rebound with stronger-than-expected rise in May

IMF cuts German 2018 economic growth forecast to 2.2 pct

(Kit Rees)

*****

EUROPEAN STOCKS FUTURES OPEN BROADLY FLAT (XX GMT)

It looks like trading is going to remain rangebound today as European stocks futures have

opened broadly unchanged.

Analysts are pointing to ongoing tensions over global trade.

"With the continued uncertainty as to what the actual next move will be, from either power,

traders were opting to sit on the side lines," analysts at London Capital Group said in a note,

referring to the U.S. and China.

Here's your snapshot:

(Kit Rees)

*****

MORNING CALL: EUROPEAN SHARES SEEN OPENING FLAT (0532 GMT)

Good morning. European shares are expected to open roughly unchanged, according to financial

spreadbetters, ahead of a U.S. deadline to impose tariffs on Chinese imports.

"While trade tensions could escalate in the near term, we remain optimistic that the risks

will diminish in coming months," analysts at Credit Suisse Wealth Management said in a note.

Spreadbetters saw Britain's FTSE 100 opening flat, Germany's DAX flat and France's CAC 0.1

percent lower. Futures for Wall Street indicated a mixed start for U.S. stocks later in the day,

while Asian equities were in negative territory as markets remain on edge.

(Kit Rees)

(Reporting by Kit Rees and Julien Ponthus)