LIVE MARKETS-What recession signals? Another all-time high coming

* European stocks recover from last week's sell-off; STOXX 600 +1% * German, China stimulus propel gains * Eyes on Fed at Jackson Hole later this week * Rate, trade sensitive sectors - miners, cars and banks - led charge higher 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 WHAT RECESSION SIGNALS? ANOTHER ALL-TIME HIGH COMING (1051 GMT) JPMorgan strategists believe the recent pullback in markets will not extend longer that the May correction, and say markets will hit a new all-time high in the first-half of 2020. They say the much-talked-about yield curve inversion has typically preceded recessions by as much as 17 months, on average, and the peaks of the equity market for the cycle by around 11 months. Meaning, we're nearly 1-1/2 year away from a global recession, if the inversions is taken as a signal. "The yield curve inversion didn't traditionally mark the peak in equity markets, at least not imminently. In fact, S&P500 on average continued to grind higher and peaked almost a year after the yield curve inverted for the first time in the cycle," equity strategists, led by Mislav Matejka, say in a note. Matejka and team say September is a good time to enter equities, citing these potential catalysts: * start of the QE by the ECB * a bigger rate cut than last time by the Fed * a chance the latest tariffs by U.S. on Chinese goods not being implemented (Thyagaraju Adinarayan) ***** GLOBAL DIVIDEND GROWTH SLOWS IN Q2; EUROPE & U.S. TOP DRAGS (0943 GMT) Global dividend payments reached a new record of more than half-a-trillion dollars in the second quarter, but the pace of growth has slowed down due to the stronger dollar, according to Janus Henderson. The asset manager's global dividend index showed Q2 payouts increased 1.1% to $513.8 billion, the slowest growth in more than two years. Some highlights in Q2: * Japan saw the best growth rising 6.8% on an underlying basis * Europe ex-UK took a sharp hit from stronger dollar * U.S. rose at its slowest in two years * Within Europe, France outperformed, rising 5.1% Major markets globally are expected to pay nearly a record $1.2 trillion in dividends this year: With Vodafone, M&S and a few others cutting their dividends sharply, Janus Henderson says: "At this late stage in the economic cycle, we are seeing a moderation of dividend increases across a broad range of companies, and the number of cuts is on the rise too." Janus Henderson, however, maintains its global dividend growth outlook at 4.2%. "This income provides a significant opportunity for investors in the current low interest rate environment," it says. (Thyagaraju Adinarayan) ***** OPENING SNAPSHOT: BEIJING AND BERLIN TO THE RESCUE (0731 GMT) China's push to cut borrowing costs and hopes that Germany will ditch its balanced budget rule have rescued European shares this morning from six-month intraday lows hit on Friday, sending the pan European STOXX 600 up almost 1% in early deals. Strong technical signals in the DAX are adding to the bullish mood and helping Frankfurt outperform its peers. "These are dip-buying kind of moves but we are yet to see the start of a new upwards trend for equities," says Neil Wilson, chief market analyst at Markets.com. All sectors are in positive territory but those sensitive to China's economy and rates are leading the charge higher - the battered euro zone banking index has hit one-week highs, mining stocks, cars and auto suppliers and tech are up more than 1%. (Josephine Mason) ***** FRESH OPTIMISM IN EUROPE (0653 GMT) Hopes for Germany fiscal stimulus and steps by China to cut corporate lending costs are injecting fresh optimism in Europe, with stocks expected to extend Friday's late rebound off six-month lows. Positive comments from U.S. President Trump over the weekend about the state of Washington's talks with Beijing have also provided some upward momentum. European stock futures are up between 0.5% and 0.8%, with Germany's DAX leading the charge. Still, the pan European benchmark is on track for a 4% drop this month, only its second fall this year. "A move unveiled by China to reduce borrowing costs for companies to prop up slowing growth, the promise of more spending by Germany in the case of a recession and the prospect of fresh tax cuts in the U.S. are helping boost the mood on Monday," says Jasper Lawler, head of research at London Capital Group. All eyes are on the Fed which will release the minutes of its last meeting, revealing what policymakers said about the flattening Treasury yield curve and the strength of support for July's quarter-point rate cut. On Friday, Fed chairman Powell will deliver a speech at an annual meeting of central bankers in Jackson Hole. It's very quiet on the corporate news front. Mitie shares are expected to get a boost from news it plans to sell its catering and hospitality unit, while German-based restaurant franchise Vapiano may come under pressure from the departure of its CEO at the end of this month. DSV has completed its acquisition of Panalpina. Headlines so far: Last orders: Rise of closing auctions stirs worries in European stock markets Novartis exec sold shares before drug data manipulation made public Sainsbury's says not talking to internal candidates for CEO succession Standard Chartered faces fine for sanctions breaches- Sky News Roche cancer treatment priced at $17,050 a month, lower than rival Vitrakvi Some top Deutsche Bank investors want chairman to step down early - Der Spiegel Bidders keen on elevator unit - Thyssenkrupp CEO in Spiegel DSV acquires Panalpina in $5.5 bln deal (Josephine Mason) ***** GERMAN, CHINESE MOVES SEEN BOOSTING EUROPE (0532 GMT) The bounce in late afternoon on Friday that saw European shares rebound from six-month lows, triggered by a report that Germany would be prepared to ditch its balanced budget rule to counter a possible recession, is expected to continue today. Adding extra fuel to the gains are key interest rate reforms by China which are expected to cut borrowing costs for companies and support a slowing economy caught in the grip of a bruising trade war with the United States. That has helped lift Asian stocks overnight and financial spreadbetters expect London's FTSE to open 29 points higher at 7,146, Frankfurt's DAX to open 36 points higher at 11,599, and Paris' CAC to open 19 points higher at 5,320. (Josephine Mason) ***** (Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)