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LIVE MARKETS-On our radar: supermarket sweep and iPhones

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: rm://josephine.mason.thomsonreuters.com@reuters.net ON OUR RADAR: SUPERMARKET SWEEP AND IPHONES (0700 GMT) European stock futures are gaining again this morning, extending a winning streak into a sixth day, as investors pile into riskier assets ahead of the ECB's much-anticipated monetary policy meeting tomorrow with the central bank's chief Mario Draghi expected to lavish the market with stimulus measures to shore up the region's economy. Whether the market has set expectations for Draghi's generosity too high is yet to be seen. German stock futures are up 0.5% while Eurostoxx are up 0.3%. China has exempted 16 types of U.S. products from additional retaliatory tariffs in a conciliatory sign from Beijing and adding to the broadly optimistic mood even as signs of a global manufacturing slowdown abound. This morning, data shows China's auto sales fell for a 14th consecutive month in August and Schmolz & Bickenbach has cut its forecast for the full-year, blaming a weakening steel demand as its order backlog continued to decline in the third quarter. Its shares could fall as much as 20%, a dealer says. Apple's launch of its new iPhone 11 series may help lift the mood across chipmakers, Infineon, Dialog Semiconductor and STMicro, although the lower price tag and new features may not be enough to win customers in China, the world's largest smartphone market that is already crowded with cheaper and feature-packed rival handsets. The owner of clothing chain Zara, Inditex, has posted first-half profits and sales that were in line with expectations, buoyed by good summer weather in Europe and favourable foreign exchange effects. But dealers say the absence of a positive surprise from the world's top fashion retailer is likely to weigh on the stock. In luxury goods, French handbag maker Hermes has delivered strong sales growth within mainland China in July and August that helped offset the impact of anti-government protests in Hong Kong on its business within the Greater China region. Traders say its EBIT growth was better than expected, which is expected to lift shares by 2-3%. In dealmaking, a report that French retailer Carrefour is weighing a possible bid for Casino is seen pressuring Carrefour and giving a significant lift to its debt-laden rival. Casino would rise as much as 10%, dealers say. UK headlines (see earlier blog for other major news overnight): Galliford Try reports 27% drop in full-year profit Domino's Pizza brand in Turkey, Russia delivers 15.4% core profit rise in H1 UK outsourcer Mitie Group loses finance head to CPA Global Britsh hedge fund Man Group president Jonathan Sorrell steps down BRIEF-Competition watchdog to assess Unite Group takeover of Liberty Living Group BRIEF-Capital & Regional Says Growthpoint In Talks To Buy Majority Stake In Co BRIEF-Chemring Says Current FY Expectations Unchanged BRIEF- New Look Q1 loss narrows to 2.7 mln pounds BRIEF-Crest Nicholson Names Iain Ferguson Independent Non-Exec Chairman BRIEF-Unite Group Sees 3%-3.5% Rental Growth In 2019-20, 2020-21 (Josephine Mason) ***** EUROPEAN STOCK FUTURES ON A 6-DAY WINNING STREAK (0624 GMT) European stock futures are indicating a stronger open this morning, extending a winning streak into a sixth day as investors brace for the ECB to cut interest rates and announce a range of stimulus measures to shore up the bloc's economy tomorrow. Germany's DAX is leading the charge, up 0.5% while the Euro STOXX 50 is up 0.3%. Traders expect the rotation seen in recent days from growth/momentum stocks into under-owned battered value/cyclicals to continue, boosting cars and banks. But reminders that manufacturing in the region and across the globe is weakening abound: Schmolz & Bickenbach overnight cut its forecast for the full-year, blaming a weakening steel demand as its order backlog continued to decline in the third quarter. On the high street though, conditions appear to remain pretty resilient. The owner of clothing chain Zara and the world's biggest fashion retailer, Inditex, has posted first-half profits and sales that were in line with expectations, buoyed by good summer weather in Europe and favourable foreign exchange effects. There's a bit of M&A action: French retailer Carrefour is reported to be weighing a possible bid for its debt-laden rival Casino while ArcelorMittal is exploring a sale of its downstream construction business as it divests non-core operations, according to a report. Here are some early headlines: Merck KGaA Confirms 2019 Targets Bankers step up rate rant ahead of crunch ECB meeting Vivendi denies plan to take over Italy's Mediaset UK's Man Group President Jonathan Sorrell to leave firm -Sky News Sanofi to pay Lexicon $260 mln for terminated partnership Naspers takes Tencent stake out of Africa with Prosus listing ArcelorMittal to explore sale of construction business- Bloomberg Norsk Hydro to shutter some aluminium foil production in Germany, lay off workers GRAPHIC-FTSE 100's changing face: A trip down memory lane Spain's Telefonica looks to make money from mobile towers European Q3 profit outlook improves slightly, still in recession Carrefour weighing bid for French retail rival Casino -BFM Schmolz + Bickenbach Lowers 2019 Earnings Forecast (Josephine Mason) ***** ROTATION CONTINUES, EUROPE SEEN HIGHER (0519 GMT) European shares are expected to extend yesterday's gains, notched up late in the day as investors continue to shift into sectors that have underperformed this year banks like cars and banks, taking profits in defensive industries like healthcare. Trading may be in a tight range again though ahead of the ECB's monetary policy meeting tomorrow, with some strategists cautioning that investors are setting their expectations for the size of stimulus to be announced too high. Banks will continue to benefit from rising bond yields. "Investors are trimming long speculative positions in sovereign bonds, as dovish expectations have certainly gone well ahead of what central banks would deliver at this month’s meetings," says Ipek Ozkardeskaya, senior market analyst at London Capital Group. IG financial spreadbetters expect London's FTSE to open 25 points higher at 7,293, Frankfurt's DAX to open 70 points higher at 12,339, and Paris' CAC to open 12 points higher at 5,605. (Josephine Mason) ***** (Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)