LIVE MARKETS-On our radar: chips, elevators, retailers

Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net

ON OUR RADAR: CHIPS, ELEVATORS, RETAILERS (0701 GMT)

European stocks are sliding in early deals with the pan European STOXX 600 down 0.3%, as the Fed's comments overnight dampen hopes of aggressive interest rate cuts next month.

Poor economic data continues to roil Germany with consumer morale falling for the second month in a row heading into July as the slowdown weighing on Europe's largest economy darkened income expectations among shoppers, a survey showed. The news comes two days after a survey showed the country's business morale fell to its lowest level since November 2014.

In corporate news, EU chipmakers are back in focus after Micron reported better-than-expected results. The news could fuel a relief rally in Infineon, Siltronic, STMicro, Dialog Semi and AMS which fell after warnings about damage from the U.S. ban on Huawei from Broadcom and Siltronic earlier this month.

Bus and rail operator Stagecoach reported higher annual profit even as it is set to lose three important rail franchises that could wipe off 1 billion pounds ($1.27 billion) from the company's books going forward.

Thyssenkrupp shares are seen rising 1.7% on report of possible takeover offer by Kone for the German company's elevator business.

European apparel retailers continue to report weak results: Sweden's Kappahl has reported a sharp drop in third quarter profits and UK's Bonmarche warned of challenges in the clothing market, exacerbated by unseasonal weather in the UK, and recommended a takeover offer from Philip Day. Bonmarche is seen falling 20-40%, per traders.

UK tobacco companies British American Tobacco and Imperial Brands are expected to open 1% lower after San Francisco voted on Tuesday to ban sales of e-cigarettes.

Some index news: MSCI, the world's largest index provider, said it is considering adding the MSCI Iceland Index to Frontier Markets status, which is effectively a promotion for the small index because it's not currenctly included in any other broader indices.

More UK headlines:

Stagecoach annual profit rises, faces UK rail hurdles

TDR Capital to buy car auctioneer BCA Marketplace for $2.4 bln

BRIEF-RPS Sees FY Results Materially Below Management, Market View

Bonmarche recommends Philip Day's Offer For Co After Poor Q1, Uncertainty

(Thyagaraju Adinarayan)

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EU CHIPMAKERS, CARS IN FOCUS (0558 GMT)

Micron's better-than-expected results overnight could provide some temporary relief to the battered European semiconductor companies. The U.S. memory-chipmaker also said it had resumed some shipments to China's Huawei and expected demand for its chips to recover later this year, sending its shares 10% higher.

European chipmakers Infineon, Siltronic, Dialog Semi and AMS could rise this morning.

More bad news for autos?

Volkswagen and Fiat Chrysler could face penalties of up to 1.8 billion euros and 746 million euros respectively, if they fail to meet the EU's 2021 emissions targets, according to a study by consulting firm AlixPartners shows.

Meanwhile, VW's sports-car brand Porsche has to recall almost 340,000 Cayenne and Panamera vehicles due to problems with their automatic transmission.

Spain's struggling supermarket chain DIA reached a new deal with its creditors and said it would propose raising the planned capital increase from 500 million euros ($569 million) to 600 million euros at its upcoming annual general meeting.

Corporate headlines:

DSV extends offer period for Panalpina by 15 days

Spain's DIA announces new financing plan with creditors

BRIEF-Evotec Places First 250 Mln Euro Promissory Note

Large carmakers including VW, FCA could face 2021 EU emissions fines - study

Porsche recalls 340,000 cars due to parking problem

BRIEF-Schneider Electric Reaffirming Medium-Term Ambition

BRIEF-Yara Mulls IPO Of Industrial Nitrogen Businesses

(Thyagaraju Adinarayan)

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EUROPEAN SHARES SEEN LOWER AGAIN AS FED COMMENTS WEIGH (0530 GMT)

European shares are expected to open slightly lower after Fed Chair Jerome Powell said the central bank is "insulated from short-term political pressures", pushing back on pressure from President Donald Trump to cut interest rates.

St. Louis Federal Reserve Bank President James Bullard said he did not view a 50 basis point cut at the U.S. central bank's July meeting as warranted, dampening hopes of aggressive rate cuts.

The pan-European STOXX 600 index is set for a 4-day losing streak, steadily retreating from 1-1/2 month highs it hit last week after the ECB and Fed indicated rate cuts.

Financial spreadbetters IG expect London's FTSE to open 17 points lower at 7,405, Frankfurt's DAX to open 29 points down at 12,199, and Paris' CAC to open 8 points lower at 5,507.

(Thyagaraju Adinarayan)

***** ($1 = 0.7894 pounds) (Reporting by Danilo Masoni, Helen Reid, Josephine Mason and Thyagaraju Adinarayan)