LIVE MARKETS-On our radar: beers, watches and supermarkets

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

ON OUR RADAR: BEERS, WATCHES AND SUPERMARKETS (0656 GMT)

The mood across riskier assets like equities improved markedly in recent days amid hopes of stimulus in Germany and China which have soothed worries about a global economic slowdown that rattled markets last week.

But stock futures have reversed their early gains and are now broadly lower with the expectation of FTSE which are up 0.2%.

A spot of profit taking was inevitable after the benchmark STOXX 600 rose 2.5% over the past two sessions, its strongest two-day winning streak since early January and recouping all the ground lost last week.

In corporate news, dealmaking is brewing in the UK pub industry, with Hong Kong's richest man snapping up Greene King, the latest sign that the cheap sterling is attracting foreign suitors even as Brexit turmoil deepens.

Royal London Asset Management, which owns as 2.79% stake in Greene King, says the deal shows that UK assets as not a "no-go zone" for overseas companies.

The deal worth $5.6 billion to buy the brewer of Old Speckled Hen and Abbot Ale may add further fizz to UK pub and restaurant stocks, which have been hurt by concerns about damage to consumers' spending power with the uncertainty over the exit from the UK.

Greene King shares surged 50% yesterday afternoon on the news.

Osram Licht shares are higher in early deals after a report that Bain Capital and Carlyle are considering sweetening their bid for the German lighting company, trumping a deal from AMS and potentially triggering a takeover battle.

French supermarket retailer Casino is targeting a further 2 billion euros ($2.2 billion) of asset sales, stepping up plans to cut debt and improve financial performance. Its shares are seen rising 2-3% on the news.

Swiss watch makers Swatch and Richemont may get a lift from data showing Swiss watch exports rose in July, reinforcing hopes that demand for luxury goods from Asia, and in particular China and Hong Kong, remains resilient despite the trade war and violent protests in the former British colony.

Danish jewellery maker Pandora posted a 13.7% fall in second-quarter core profit, missing expectations, but it has maintained its full-year guidance. Its shares are seen falling 3%.

In other earnings, BHP shares have been under pressure in Australia overnight and are expected to fall 1% in London after the miner delivered lower than expected profits and dividend even though it included a record payout and its largest annual profit in five years.

The company also flagged global economic headwinds which would hit demand for its key commodities, iron ore and copper.

Goldman has upgraded Antofagasta and Glencore to 'neutral' from 'sell'.

Oslo-listed fish farmer Bakkafrost reported a smaller-than-expected drop in Q2 core profit amid lower salmon output and a decline in prices and its shares are seen up as much as 4%.

Here are your headlines:

Mining giant BHP pays record dividend, but flags global growth headwinds

Bakkafrost Q2 core profit drops 17%, but beats forecast

UK pubs operator Greene King agrees to 4.6 bln pounds Hong Kong offer

French retailer Casino targets further 2 bln euros of asset sales

Retailer Casino raises offer to buy Exito's 50% stake in GPA

Germany's IG Metall union rejects AMS takeover offer for Osram

Persimmon profit drops as focus on quality leads to delivery delays

AstraZeneca's Farxiga meets main goal of heart failure study

(Josephine Mason)

*****

EUROPE SEEN TAKING A BREATHER (0513 GMT)

Stocks in Europe are expected to take a breather this morning after gaining 2.5% and recouping all of last week's losses over the past two trading sessions as worries about a global economic slowdown have eased.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.31%, while Japan's Nikkei rose 0.45%. The improved mood was helped by a rally on Wall Street overnight, with the S&P 500 gaining 1.21%.

Financial spreadbetters expect London's FTSE to open 3 points lower at 7,187, Frankfurt's DAX to open 3 points lower at 11,712, and Paris' CAC to open 6 points lower at 5,365.

(Josephine Mason)

*****

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