LIVE MARKETS-Premiums for safety are too high if green shoots of growth appear

* STOXX 600 up 0.3 pct

* Investors pin hopes on potential U.S.-China trade deal

* H&M shines after results; TUI sinks after profit warning

March 29 - 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

PREMIUMS FOR SAFETY ARE TOO HIGH IF GREEN SHOOTS OF GROWTH APPEAR (0953 GMT)

What's priced into equities? That's the question on everyone's lips as a yield curve

inversion reignites growth fears while world stocks head for their strongest quarter since 2012.

UBS strategists reckon, after this strong rally, that stocks are reflecting a stabilisation

but not a pick-up in growth, and this opens opportunities for bulls to buy growth-sensitive

areas of the market at bargain basement prices.

"Growth stabilisation is priced but acceleration is not and confirmation of a growth turn is

needed for a sustained leg higher in equities," write UBS strategists, led by Keith Parker.

UBS economists forecast a roughly 100 basis point rise in global GDP growth to 4.1 percent

in Q2, and say some "green shoots" - signs of U.S. domestic demand picking up - support their

view. The slowdown was largely tariff induced, which means easing of the U.S.-China trade war

would provide a big boost.

Skittish investors - who haven't even bought into this quarter's rally, flow data shows -

have driven up prices on "safe" assets while cycle-sensitive ones have got hefty discounts.

"Premiums for safety and discounts for uncertainty are too high if growth turns and the Fed

stays dovish," UBS strategists write.

They prefer high vol stocks, which are at a 35 percent discount to low vol stocks, as well

as autos, luxury goods, and leisure stocks, while they see utilities as overpriced.

Germany is one of the cheapest countries, they highlight, while they stay long China as a

trade deal could boost the stock market further.

(Helen Reid)

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H&M, GALAPAGOS LEAD THE CHARGE AS MINERS DRIVE EUROPEAN GAINS (0853 GMT)

It's not as big a gain in European stocks as futures were indicating this morning, with the

STOXX up 0.3 percent and the DAX up 0.4 percent, but big stock moves are stealing the spotlight.

Miners are leading the way, up 1.6 percent as copper and iron ore prices rise after Rio

Tinto declared force majeure on some iron ore contracts after a cyclone in Western Australia and

on hopes talks in Beijing between U.S. and China trade representative will deliver a deal.

And autos, another highly trade-sensitive sector, are also seeing a nice rally, up 0.9

percent.

Zooming in, there are quite a few big stock moves to keep traders busy this morning.

H&M shares are jumping 14.5 percent to the top of the STOXX after the Swedish fast fashion

retailer's earnings and margins easily beat analysts' expectations. "Better than feared," one

trader said. It's helping the retail index jump 1.3 percent.

Tour operator TUI meanwhile is sliding 10.5 percent after a profit warning. It said it would

take a 200 million euro profit hit this year due to the grounding of Boeing's 737 MAX aircrafts.

Nordea Bank and Swedbank are both falling sharply - down 10.1 and 8.1 percent - on a report

New York's financial regulator has sent letters to the lenders asking for detailed information

about their dealings with Danske Bank, in an ongoing probe into money laundering. Both stocks

are also ex-div today.

And Dutch biotech firm Galapagos is jumping 12.9 percent after its Filgotinib drug met its

main goal in phase 3 of a rheumatoid arthritis study.

(Helen Reid)

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WHAT'S ON OUR RADAR FOR EUROPE'S OPEN (0748 GMT)

European stock futures are climbing 0.3 to 0.6 percent as investors hoped the positive tone

emerging from U.S.-China trade talks in Beijing indicated an imminent deal to end their ongoing

tariff war. FTSE 100 futures are lagging peers as investors prepared for a parliamentary vote on

Britain’s Withdrawal Agreement with the European Union.

In company news results and dealmaking dominate.

H&M shares could jump as much as 8 to 10 percent, traders say, after the Swedish fast

fashion retailer reported a smaller-than-expected fall in first-quarter pretax profit and

margins which significantly beat the market’s estimates.

French telecoms firm Altice is expected to fall 2 percent after reporting a year of heavy

promotions took a toll on its profits.

British pharmaceuticals firm AstraZeneca is indicated down 2-3 percent after it struck a big

deal with Japan's Daiichi Sankyo Co to develop and sell its cancer drug, an agreement which

could result in Astra paying its Japanese partner as much as $6.9 billion.

Chemicals firms BASF and Covestro are seen falling 1 percent after U.S. chemicals giant

DowDupont cut its sales forecast.

In another bit of bad news around the semiconductor sector, Swiss vacuum valve maker VAT

Group said it is prolonging shorter working hours for 400 production employees for another three

months, blaming a market correction in semiconductor equipment. Its shares are seen falling 1 to

2 percent.

In the UK, stockbroker Numis said it sees lower first-half revenue due to a difficult market

environment and lower UK equity capital market volumes. Building materials firm Travis Perkins

is seen rising 1 percent after its CEO said he would step down in August.

Dutch biotech firm Galapagos is seen jumping 10 to 15 percent after its Filgotinib drug met

its main goal in a phase 3 rheumatoid arthritis study.

(Helen Reid)

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FUTURES RISE ON U.S.-CHINA TRADE DEAL HOPES, EYES ON ASTRAZENECA, H&M, ALTICE (0719 GMT)

European futures are up strongly with the trade-sensitive DAX up 0.6 percent along with

France's CAC 40 and the Eurostoxx 50.

Hopes of a trade deal to end an ongoing tariff war are boosting the market today.

On the corporate front eyes are on AstraZeneca after it signed a deal with Japan's Daiichi

Sankyo Co to develop and sell its cancer drug. Results will also drive moves with Altice

reporting a year of heavy promotions took a toll on profits, while H&M reported a smaller fall

in Q1 pretax profit than expected.

Here's your futures snapshot, with some further headlines below:

Altice Europe bets on French rebound to repay debt after promotions hit profit

AstraZeneca in cancer drug deal that could pay Daiichi Sankyo up to $6.9 bln

H&M Q1 pretax profit falls less than expected

Rio Tinto declares force majeure on some iron ore contracts after cyclone

France, braced for activist raids, raises Valeo stake

Nestle to face lawsuit saying Poland Spring water not from a spring -U.S. judge

Switzerland's VAT keeps limits on work hours, citing gloomy chip market

(Helen Reid)

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HOPES OF CHINA-U.S. TRADE DEAL TO BUOY EUROPEAN STOCKS (0629 GMT)

As a tumultuous quarter draws to an end, Europe is set to get a boost today from hopes of

progress in trade talks in Beijing between trade representatives on both sides. U.S. Treasury

Secretary Steven Mnuchin said he has a "productive working dinner" last night, which helped

markets gain.

Asian shares rose overnight, led by a surge in Chinese equities, on hopes that Washington

and Beijing are making progress in trade talks, while global bond yields moved higher after a

prolonged slide on worries about the economic outlook.

Meanwhile in Europe, today is the day the UK was originally meant to leave the EU. Instead

we're getting yet another vote in parliament with Prime Minister Theresa May asking lawmakers to

give their assent to only one part of the Brexit package: the Withdrawal Agreement, without the

Political Declaration on future relations. If you're confused, read our Factbox here:

Financial spreadbetters expect London's FTSE to open 29 points higher at 7,263, Frankfurt's

DAX to open 45 points higher at 11,473 and Paris' CAC to open 27 points higher at 5,324.

(Helen Reid)

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(Reporting by Helen Reid, Danilo Masoni, Josephine Mason)