LIVE MARKETS-Opening snapshot: Trade war rears its head again

* STOXX hovers flat, DAX down 0.2 pct

* U.S. proposes list of EU goods to tax including aircraft

* Airbus, Safran, Leonardo, MTU Aero tumble

* List includes handbags, ski suits, cheese, spirits

April 9 - Welcome to the home for real-time coverage of European equity markets brought to

you by Reuters stocks reporters and anchored today by Helen Reid. Reach her on Messenger to

share your thoughts on market moves: helen.reid.thomsonreuters.com@reuters.net

OPENING SNAPSHOT: TRADE WAR REARS ITS HEAD AGAIN (0751 GMT)

European stocks are just holding above water this morning while the DAX is down 0.2 percent

as the U.S. reignites trade worries with its list of proposed goods it plans to slap tariffs on

in retaliation to the EU's Airbus subsidies.

And it's not only Airbus that's being hit (down 1.9 percent) by the U.S. proposal - engine

and aircraft makers Leonardo, MTU Aero Engines, and Safran are being dragged down too.

And Pernod Ricard, Campari, Richemont, Kering, Boss, and Moncler are also among those hit by

the wide-ranging list which includes ski suits, handbags, binoculars, watch parts, spirits,

cheese, and wine.

Unicredit economists say this list is still preliminary but is expected to be finalised in

the coming months after a period of public comment and a report from the WTO.

It's the scenario many in the market were fearing: as the China-U.S. talks progress towards

resolution, the U.S. could target Europe next.

"It looks like Trump has shifted focus back to the EU regarding tariffs. This is pressure

the EU do not need and if Trump decides to escalate (it) further could impact heavily on the EU

economies," says John Woolfitt at broker Atlantic Markets.

"It is certainly an inflammatory manoeuvre to say the least and directly in retaliation

towards the EU subsidies put on Airbus. Get ready for more tit-for-tat tariff scrapping to

follow."

Here's your snapshot of top movers:

(Helen Reid and Thyagaraju Adinarayan)

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WHAT'S ON THE RADAR: U.S. TARIFF RETALIATION TO HIT PLANEMAKERS (0647 GMT)

European shares are set to continue their slide on Tuesday as a looming Brexit summit and

ECB meeting sap risk appetite and investors cash in their gains with the STOXX fresh from a

six-month high. Futures are down 0.1 to 0.3 percent.

Airbus shares are seen falling 1-2 percent after the U.S. Trade Representative listed

European goods to hit with tariffs as retaliation against Airbus subsidies. Defence firms Safran

and Leonardo were also expected to take a hit to the tune of 1-2 percent after the list included

helicopters and aircraft, while dairy producers could also be hit.

The move will stir concerns that U.S. President Trump will turn his attention to Europe as

tensions with China ease. He has threatened to increase import tariffs on European cars and is

due to make a ruling in May.

Results and dealmaking are set to drive the day.

Novartis shares are down 9 percent in pre-market trading as the pharma company was set to

open its first day of trading without eye-care business Alcon. The spin-off, listing on

Switzerland’s SMI index, was indicated to start trading at 46.45 francs.

Swiss construction chemicals firm Sika and flavouring ingredient maker Givaudan are both

likely to rise 1 to 3 percent after results met the market’s expectations.

Some traders say better Q1 earnings and sales from Taiwan's GlobalWafers may boost

Siltronic.

Norway’s Telenor is expected to fall 1-2 percent after agreeing a $1.7 billion deal for a

majority stake in Finnish telecom operator DNA. Shares in the Finnish company are seen rising 4

percent.

Merck won a takeover battle, winning support from Versum Materials for a $6.4 billion

takeover of the group after a six-week hostile campaign to sink the deal agreed between Versum

and Entegris.

British American Tobacco shares are seen unchanged after Sky reported chairman Richard

Burrows would step down.

(Helen Reid)

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HEADLINES TO WATCH: STANCHART, MERCK, NOVARTIS (0611 GMT)

European futures are down 0.1 to 0.3 percent as investors look ahead to a minefield of risks

and continue to take profits after stocks hit six-month highs.

In company news, Standard Chartered shares could be hurt by a Reuters exclusive reporting

the bank could pay just over $1 billion to resolve a probe into potential U.S. sanctions

violations.

Merck won a takeover battle, winning support from Versum Materials for a $6.4 billion

takeover of the group after a six-week hostile campaign to sink the deal agreed between Versum

and Entegris.

Novartis shares are seen falling 9 percent after the pharma company spun off eye-care

business Alcon.

The U.S. Trade Representative proposed a list of EU products from large commercial aircraft

to dairy products and wine on which to slap tariffs as retaliation for European aircraft

subsidies. Traders are pointing to this news but not seeing any broad impact on the market,

saying it's difficult to quantify at this point.

Results from Sika and Givaudan will likely boost the shares.

Standard Chartered expected to pay just over $1 bln to resolve U.S., U.K. probes

Novartis Aims For Strong Dividend, No Adjustment For Alcon Spin-Off

Total, partners sign long-awaited gas deal with Papua New Guinea

Sika quarterly sales beat estimates, to open more plants this year

Givaudan aims to outpace market after beating poll in Q1

Merck KGaA wins Versum's support for sweetened $6.5 bln offer

U.S. proposes list of EU goods for tariff retaliation against Airbus subsidies

(Helen Reid)

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JITTERS KEEP STOCKS ON DOWNWARD TRAJECTORY (0536 GMT)

European stocks are set to slide again as caution sets in ahead of tomorrow's Brexit summit

and ECB meeting.

Asian shares struggled to make gains overnight as investors braced for key events later in

the week, including the start of the U.S. earnings season and a crucial Brexit summit, while

broader concerns about slowing global growth checked sentiment.

Financial spreadbetters at IG expect London's FTSE to open 5 points lower at 7,446,

Frankfurt's DAX to open 37 points lower at 11,926 and Paris' CAC to open 8 points lower at

5,464.

(Helen Reid)

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