LIVE MARKETS-On our radar: software, tobacco and advertising

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 RADARS: SOFTWARE, TOBACCO AND ADVERTISING (0559 GMT)

The flow of earnings news is slightly tamer than yesterday but it's not all good.

Hot on the heels of SAP's poor results, Germany's No. 2 listed tech company Software AG , has lowered the outlook for its integration software division as it reported a 9% drop in second-quarter operating profit. That's sending its shares down by 5% in pre-market trading.

Publicis, the world's third-biggest advertising group, has cut its 2019 revenue growth guidance after reporting a weaker-than-expected Q2 performance as it struggles to revive sluggish sales in the United States.

U.S. earnings news may might help soothe some nerves. After the closing bell last night though, Microsoft Corp delivered better-than-expected Q4 revenue and profit, driven by continued sales increases from its cloud business and sending its shares to all-time highs.

A positive outlook from Philip Morris may help boost tobacco stocks on this side of the Atlantic too.

Here are some early headlines:

EU clears Vodafone's $22 billion Liberty deal

BMW picks "decisive" new CEO to catch up with rivals

Bidders line up offers for Portugal's largest motorway operator Brisa- sources

Generali buys Portuguese assets from Apollo for 600 mln euros

Publicis cuts revenue guidance after disappointing second quarter

AB InBev explores asset sale after dropping Asia IPO plan -WSJ

Munich Re says expects 1 bln eur of net profit in second quarter

Software AG Reports First Half Group Revenue At EUR 411.4 Mln

Sartorius H1 Net Profit Up At 101.5 Million Euros

(Josephine Mason)

EUROPE SEEN SHAKING OFF EARNINGS JITTERS (0514 GMT)

Investors in European stocks appear set to shake off yesterday's worries about weak earnings reports and return to riskier assets after comments overnight from a Federal Reserve top official reinforced expectations of a U.S. interest rate cut at the end of the month, offsetting worries about renewed tensions between the United States and Iran.

Asian and U.S. market returned to a firmer footing after New York Fed President John Williams said policymakers could not wait for economic disaster to hit before adding stimulus, in a speech interpreted as a strong argument in favour of quick monetary action.

That may offset fresh geopolitical jitters after the U.S. Navy destroyed an Iranian drone in the Strait of Hormuz, a major choke point for global crude flows, again raising tensions in the Middle East.

The resulting run-up in crude prices will give London's oil heavy FTSE 100 a lift.

IG financial spreadbetters expect London's FTSE to open 32 points higher at 7,525, Frankfurt's DAX to open 84 points higher at 12,312, and Paris' CAC to open 36 points higher at 5,587.

The benchmark STOXX 600 is flat on the week.

(Josephine Mason)

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