LIVE MARKETS-Recipe for success: Don't go too big or too small

* European shares open higher * STOXX 600 at highest since July 29 * ECB set to unveil fresh stimulus measures * Trade war hopes lift Asian shares * Morrison up on results, AB Inbev gains on unit IPO plan Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net RECIPE FOR SUCCESS: DON'T GO TOO BIG OR TOO SMALL (0821 GMT) The FTSE 250 midcap index, which has a mix of both international and domestic flavour, has been a clear winner in London in the last 2-months amid the Brexit crisis. As the sterling was jumping around on Brexit headlines over the last few weeks, export-heavy FTSE 100 benefitted every time the pound fell sharply and lost those gains when pound recovered, while the domestically focused small caps lost out on worries about domestic economy in case of a no-deal Brexit. Getting the mix right is important and that's been the recipe for the midcap index's success, which has risen 7.5% in the last one-month and is now trading near 1-year highs. That's while the blue chip and small-cap indexes are at 1-month highs. The chart below shows how the FTSE 100 and the FTSE small cap indexes are underperforming the midcaps: (Thyagaraju Adinarayan) ***** EUROPE AT NEW 6-WEEK HIGH, ROTATION TRADE LOSES STEAM (0731 GMT) European shares have opened at a fresh six-week high ahead of the ECB meeting expected to unveil a comprehensive stimulus package to prop up the region's ailing economy, while upbeat tone from the trade war front is also helping. The pan-regional STOXX 600 index has hit its highest since July 29 and is now up 0.2%, while euro zone stocks are up 0.3% and Britain's FTSE is rising 0.2%. Investors look to have turned more cautious in chasing the strong rotation into value stocks that has shaped price action this week with banks - one of the main beneficiaries of the move - trading slightly in the red. In single stocks, Morrison is among the biggest gainers in Europe, up 4% after results. Britain's No. 4 grocer has reported its first fall in quarterly underlying sales since 2016, partly reflecting a tough comparison with last year when it was boosted by a hot summer, but it has pleased investors with a special dividend and a better-than-expected profit number. Its CEO said talk of the firm being a takeover target is "pure speculation". Shares in AB InBev are up 3.8% after the world's largest brewer said it is continuing exploring a listing of its Budweiser unit. People with knowledge of the matter said AB InBev aims to raise about $5 bln from a the deal. Here's your opening snapshot: (Danilo Masoni) ***** WHAT WE'RE WATCHING AT THE OPEN (0656 GMT) Euro zone stock index futures are rising for a seventh day in a row as investors gear up for a stimulus package from the ECB and with sentiment supported by optimism over Sino-US trade talks after Trump agreed to delay a tariff hike on $250 billion worth of Chinese imports. Futures on the Euro STOXX 50 and FTSE indexes are up 0.5% and 0.4% respectively. On the corporate front there is some more upbeat IPO news to digest one day after a shiny stock market debut in Amsterdam of Prosus, a Naspers spin-off that includes the e-commerce group's 31% stake in Chinese tech giant Tencent. AB InBev said it is continuing to explore an Hong Kong IPO of its Asia Pacific unit Budweiser, two months after saying it will not proceed with the planned listing. Its shares are seen up 1-2%. Meanwhile in Germany, software company TeamViewer set the price range for its Frankfurt listing, valuing it at up to 5.5 billion euros in one of Europe's largest IPOs this year. Shares in Rovio Entertainment are seen falling as much as 5% after the maker of Angry Birds games cut its 2019 sales and profit outlook, citing increasing investments and lower-than-expected revenue from brand licensing and older games. Shares in the London Stock Exchange are also likely to remain in focus after doubts on the merits of Hong Kong Exchanges and Clearing's $39 billion takeover approach sent shares in Hong Kong exchange falling more than 3%. In earnings, Morrisons reported its first fall in quarterly underlying sales since 2016, partly reflecting a tough comparison with last year when it was boosted by a hot summer. Shares in Britain's No. 4 grocer however are seen up 1-2% as profit beat expectations and the company proposed a special dividend. Volkswagen could fall with traders citing on reports in the German media saying that newer engines contain cheat devices. Other stock movers: BAT plans to cut 2,300 jobs by Jan 2020; Retailer John Lewis could not mitigate no-deal Brexit; ABB begins construction of new robotics factory in Shanghai; Britain's Co-op posts lower profit, flags Brexit risks (Danilo Masoni) ***** EUROPEAN FUTURES EXTEND WINNING STREAK (0623 GMT) European stock index futures are rising this morning with the Euro STOXX 50 up 0.5% and set for seven straight positive days as investors gear up for fresh ECB stimulus measures. In Asian hours it rose as much as 0.8% to its highest since July 25 but has reduced part of those gains now. Futures on other European benchmarks were also up, including the FTSE. On the corporate front it looks rather quiet. AB InBev could be one to watch after the company said it is continuing to explore an IPO in Hong Kong of its Asia Pacific unit, Budweiser Brewing Company APAC Ltd, two months after saying it will not proceed with the planned listing. The London Stock Exchange is also likely to remain in focus after investors' doubts on the merits of Hong Kong Exchanges and Clearing Ltd's $39 billion takeover approach sent shares in Hong Kong stock exchange falling more than 3%. Here is your early morning headlines round-up: AB InBev resumes exploring Budweiser listing two months after pulling out HSBC plans sale of French retail banking business - WSJ Hong Kong exchange shares fall after $39 bln LSE approach CME Group not looking to be spoiler on LSE deal, CEO says German software firm TeamViewer sets IPO price range at up to 5.5 bln euros Remy Cointreau picks Richemont's Vallat as new CEO Norwegian Air says bondholders look set to agree to new debt terms Vopak acquires 49% stake in Colombia's sole LNG import facility Bouygues to sell 13% stake in Alstom in share placement Britain looks to restore ship-building industry with new frigates ABB begins construction of new robotics factory in Shanghai (Danilo Masoni) ***** EUROPE SEEN OPENING HIGHER ON ECB DAY (0529 GMT) European shares are expected to open higher today ahead of the European Central Bank meeting where the central bank is expected to cut interest rates further into negative territory as part of a broader stimulus package to help prop up the region's ailing economy. The pan-regional STOXX 600 index climbed to its highest since July 30 yesterday and spreadbetters at IG see more gains ahead: London's FTSE is seen opening 37 points higher at 7,375, Frankfurt's DAX 77 points higher at 12,436, and Paris' CAC 32 points higher at 5,650. Over in Asia, stocks hit a six-week high on hopes for a thaw in U.S.-China trade frictions and expectations that the ECB would kick off another wave of monetary easing by global central banks. (Danilo Masoni) ***** (Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)