LIVE MARKETS-Opening snapshot: are European stocks stuck?

April 16 - 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

OPENING SNAPSHOT: ARE EUROPEAN STOCKS STUCK? (0743 GMT)

The STOXX 600 is up just 0.2 percent and we may have another range-bound day on our hands -

it's pretty staggering but the pan-European index has traded in an extremely narrow 4-point

range for the past two weeks.

The stronger March house price data for China is stirring hopes this morning that the

world's No. 2 economy is recovering from slower growth earlier this year as Beijing's stimulus

measures kick in ahead of Chinese GDP data due tomorrow.

But really there's still little sign of any conviction at index level in either direction.

Investors say a pause was overdue after the stellar Q1 across global equities fuelled by the

central banks' about-turn on interest rates and optimism about U.S.-China trade.

With that all priced in, investors are now hoping Q1 earnings season or macro data might

provide the impetus for the next leg higher or lower.

Let's see how German ZEW sentiment data looks in just over an hour, and we have a slew of

PMI data later in the week as well as China growth data tomorrow.

There's some action among individual stocks though - German online clothes marketplace

Zalando is top of the pan-European STOXX 600, rallying almost 10 percent, after forecasting

better-than-expected Q1 profits and lifting rivals Boohoo and ASOS slightly.

VAT Group is up 7 percent after its results.

Arlines and travel companies are losing altitude after Lufthansa's profit warning. Travel

and leisure stocks are among the biggest fallers across Europe after the German airline

blamed higher fuel costs and overcapacity in Europe for its weaker-than-expected Q1 profit

outlook, reinforcing worries about stiff competition across the sector.

Lufthansa is down 2 percent languishing at the bottom of the DAX and dragging rivals with

it. British Airways owner IAG and TUI are down 0.7 percent on the FTSE 100 and easyJet is down

0.6 percent. Air France is 1.5 percent lower.

(Josephine Mason)

*****

CHINA DATA BOOSTS EUROPE (0652 GMT)

European shares are indicating a slightly higher open today as stronger China March house

price data reinforces hopes that Beijing's stimulus measures have helped shore up the world's

No. 2 economy.

That's offsetting weaker sentiment on Wall Street overnight after uninspiring results from

Goldman Sachs and Citigroup although the banks' lacklustre trading performance in the quarter

highlights a recurring theme across the global banking sector.

All the major futures are up 0.1 percent, while Germany's ZEW investor sentiment data from

Germany at 0900 GMT will be widely watched for signs on the health of Europe's largest economy.

The biggest corporate news this morning are from Germany: a profit warning from Lufthansa

and better-than-expected earnings outlook from online clothes marketplace Zalando

(see earlier blog - Tale of two German Markets).

Lufthansa shares are down 5 percent while Zalando shares are up 3.6 percent in early

Frankfurt trade.

In other corporate news, miner Rio Tinto is likely to get a lift even after cutting its 2019

iron ore shipments guidance amid hopes that any loss of output would be offset by higher prices

of the steelmaking raw material.

Elsewhere in the UK, a blow to housebuilders after FTSE 250-listed builder Galliford Try cut

its FY profit forecast and launched a strategic review of its construction business. Shares are

seen falling as much as 25 percent.

In Italy, traders say the market is taking in its stride news overnight that the country's

top bank UniCredit has agreed to pay $1.3 billion to U.S. authorities to settle probes of

violations of U.S. sanctions on Iran and other countries, ending a six-year probe that has hung

over the bank.

Here are some UK headlines catching attention (see earlier blog for others)

Recruiter Hays quarterly net fees rises

JD Sports' annual profit rises despite retail challenges in UK

BRIEF-G4s Q1 Rev Up 4.8 Pct, Says Separation Review Making Good Progress

Galliford to review construction business, lowers forecast

(Josephine Mason)

*****

TALE OF TWO GERMAN MARKETS (0557 GMT)

It's a tale of two markets in Germany AG this morning - a profit warning from Luthansa

and better-than-expected earnings outlook from online clothes marketplace Zalando

.

Lufthansa has blamed soaring fuel costs and stiff competition in Europe that has dampened

fare prices for its Q1 profit warning, sending its shares in pre-market down 5.5 percent.

The news underscores worries across the industry that are likely to weigh on rivals and

follows downbeat outlook from budget airlines easyJet earlier this month and the bankruptcy of

Iceland's WOW in late March.

In contrast, Zalando forecast its Q1 profits will be above market consensus, coming hot on

the heels of an upbeat update from British online fashion retailer ASOS last week and the latest

sign of the changing retail market landscape as e-commerce grows.

Its shares are up 3 percent in pre-market Frankfurt trade, and the news may give rivals,

ASOS, Boohoo and Next a boost.

It's relatively quiet elsewhere.

The news was well-flagged (and follows a similar move by Standard Chartered last week), but

Italy's top bank UniCredit has agreed to pay $1.3 billion to U.S. authorities to settle probes

of violations of U.S. sanctions on Iran and other countries.

The bank says the penalties in the sanctions probe were fully covered by provisions with

resources that would be released to boost the P&L and core capital, ending a six-year probe that

has hung over the bank.

Here are other headlines catching attention this morning:

Lufthansa's blames high fuel costs on drop in Q1 EBIT

Daimler: Mercedes sells more than 600 Maybach models a month in China

U.S. House panels issue subpoenas to Deutsche Bank, others in Trump probe

Italy's UniCredit to pay $1.3 bln to settle U.S. sanctions probe

Vivendi AGM backs plans for possible share buyback

EssilorLuxottica director rules out merger could unravel due to boardroom row

Zalando Expects Adjusted EBIT In First Quarter Above Consensus

EU says it is ready to launch U.S. trade talks, but without agriculture

Telia to implement 5 bln SEK share buyback programme

(Josephine Mason)

*****

EUROPE DRAWING STRENGTH FROM ASIA (0518 GMT)

Europe is expected to draw strength from Asian markets overnight after a fairly subdued

start to the week yesterday, offsetting for now weaker sentiment on Wall Street induced by

disappointing earnings from Goldman Sachs and Citigroup.

Financial spreadbetters expect London's FTSE to open 14 points higher at 7,451, Frankfurt's

DAX to open 27 points higher at 12,047, and Paris' CAC to open 5 points higher at 5,514.

(Josephine Mason)

(Reporting by Danilo Masoni, Helen Reid, Julien Ponthus and Josephine Mason)