LIVE MARKETS-The risks in Europe look "a little elevated"

* European shares rise

* STOXX hits fresh 6-week high

* Good earnings provide support

* Amazon lifts U.S. futures ahead of GDP data

July 27 (Reuters) - 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: danilo.masoni.thomsonreuters.com@reuters.net

THE RISKS IN EUROPE LOOK "A LITTLE ELEVATED" (1505 GMT)

Some investors remain hesitant around European equities.

Even (Taiwan OTC: 6436.TWO - news) if Europe might look attractive in terms of value, the risks in the region are a little

elevated, says Olivia Engel, chief investment officer of State Street Global Advisors’ Active

Quantitative Equities.

"Some of the political events that are going on are still hanging over European equities,

and it's very difficult to actually realise the valuation that is there in Europe," says Engel.

However within Europe, she says that they like financials and energy stocks, and are looking

for cyclicals to pick up globally.

"Because of the overhanging risks around trade and around the political climate, investors

have been continuing to reward companies where they are seeing more stable growth... in the

technology sector," says Engel.

(Kit Rees)

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MIDDAY SNAPSHOT: SCALING SESSION HIGHS (1145 GMT)

We're halfway through Friday's session and the STOXX is at a session high as telecoms speed

ahead.

Well-received earnings updates from Proximus (LSE: 0DPU.L - news) and BT are helping boost

telcos, while cyclicals such as banks and miners are continuing to be lifted by the feel-good

factor from easing trade tensions.

Over in the U.S., stocks futures are slightly higher as investors focus on Amazon and

Twitter (Frankfurt: A1W6XZ - news) 's results, ahead of a potentially strong U.S. gross domestic product (GDP) data.

Here's your snapshot:

(Kit Rees)

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TRADE WARS. WHAT TO WATCH NEXT? (1035 GMT)

Trade fears are ebbing today but remain atop investors' minds.

A team of economists at Morgan Stanley (Xetra: 885836 - news) has taken a deep dive into trade war scenarios, their

possible impact on the global economy and supply chains, and indicate what actions investors

need to track for any signs of an escalation.

Here's your timeline and as you can see it looks that markets may have to brace for some

turbulence starting from mid August.

And here are their 4 scenarios, from status quo to a full-blow escalation, and the impact on

GDP:

(Danilo Masoni)

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STOXX SET FOR FOURTH WEEK OF GAINS (0740 GMT)

Solid earnings updates in sectors ranging from banks to capital goods are helping European

shares build slightly on the gains made in the previous session, with the STOXX 600 rising 0.2

percent at fresh six-week highs in early deals and set for its fourth straight week of gains.

Here's your snapshot with the STOXX's weekly moves so far in 2018.

Among the top gainers are Reckitt Benckiser (Xetra: A0M1W6 - news) , Carrefour (LSE: 0NPH.L - news) , Saint Gobain (LSE: 490580.L - news) , BT, Vinci (LSE: 0NQM.L - news) and BBVA (LSE: 931474.L - news) ,

all rising following well-received results.

(Danilo Masoni)

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WHAT WE'RE WATCHING BEFORE THE OPEN (0647 GMT)

European shares are set to stabilise at the six week highs reached in the previous session

after a US-EU trade truce diminished the prospect of US tariffs on European autos, with a number

of solid earnings updates likely to provide fresh support today. Futures on main country indexes

were trading between flat and a rise of 0.3 percent.

Deutsche Bank (IOB: 0H7D.IL - news) strategists highlight that with 40 percent of market cap having reported so

far, European second-quarter EPS growth has accelerated to 6 percent from 0 percent in the

first. They say this is a good results, given the sharp deterioration in euro area growth

momentum seen in the period.

The auto sector could find some more relief after French car maker Renault (LSE: 0NQF.L - news) achieved record

profitability in the first half as emerging-market sales surged, more than offsetting

exchange-rate challenges. Investors may also take some comfort from Amazon's strong results

following the grim update from Facebook (NasdaqGS: FB - news) which hit hard the Nasdaq (Frankfurt: 813516 - news) overnight. In the UK, eyes

will be on BP after the oil group agreed to buy U.S. shale oil and gas assets from global miner

BHP Billiton (NYSE: BBL - news) for $10.5 billion.

For other stock movers check out the previous post.

(Danilo Masoni)

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HEADLINE ROUNDUP: EARNINGS, EARNINGS, EARNINGS (0559 GMT)

Today's early morning headlines are all about company updates and the list is quite long:

Renault lifts margins on record first-half sales

Danone Q2 sales growth slows as Morocco boycott weighs

LafargeHolcim H1 profit drops 43 pct as restructuring charges bite

French group Vinci keeps upbeat outlook as H1 profit rises

Axel Springer (Swiss: SPR.SW - news) confirms guidance as Business Insider turns profit

France's Engie (LSE: 0LD0.L - news) confirms 2018 guidance despite Belgian nuclear outages

Dutch lighting maker Signify cuts 2018 sales outlook

French group Vinci keeps upbeat outlook as H1 profit rises

Spain's BBVA posts 18.3 pct rise in Q2 net profit y/y

Spain's Caixabank Q2 net profit up 36 pct on lower provisions

Spain's Sabadell books Q2 net loss after TSB's IT-failure costs

BASF operating profit up 5 pct on specialty chems, oil division

Swiss bank Vontobel raises mid-term goals as assets under management rise to record

Blackstone (NYSE: BX - news) is said to buy Altice Towers in Dominican Republic - Bloomberg

BP pays $10.5 bln for BHP shale assets to beef up U.S. business

Fiat Chrysler says it did not know about Marchionne's illness

Kering (LSE: 0IIH.L - news) rides out China fears with Gucci growth

Luxury group Kering says it has finished selling off brands

Cosmetics giant L'Oreal leans on luxury arm as profits rise

Retailer Carrefour H1 operating profit rises though France lags

French group St Gobain to step up sales and acquisitions as H1 profits rise

Amazon earnings skyrocket on cloud computing, advertising

Benetton family to sell part of Cellnex stake - sources

Market headlines:

> Asian shares post modest gains as trade fears keep investors cautious

> Facebook sends Nasdaq tumbling, but trade optimism boosts Dow

> Nikkei up slightly; focus on global trade, BOJ meeting

> Yields rise as traders await Friday's GDP report

> Dollar steadies after rally, U.S. GDP data awaited

> Gold inches up as dollar eases ahead of U.S. GDP data

> Copper edges higher, heads for first weekly jump in seven

> Copper edges higher, heads for first weekly jump in seven

(Danilo Masoni)

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MORNING CALL: EUROPEAN SHARES SEEN HIGHER (0524 GMT)

European shares are set to open higher, extending gains seen in the previous session when

hopes of a breakthrough in U.S.-EU trade talks and a weaker euro pushed the STOXX 60 at 6-week

highs at the close.

Eyes today are on a flurry of earnings updates and on GDP data out of the U.S. later in the

session. Here are your opening calls, courtesy of CMC Markets (LSE: CMCX.L - news) :

FTSE100 is expected to open 21 points higher at 7,684

DAX is expected to open 31 points higher at 12,840

CAC40 is expected to open unchanged at 5,480

Over in Asia, stocks struggled to gain traction, following a mixed Wall Street finish and as

the worsening Sino (Dusseldorf: 1205802.DU - news) -U.S. trade dispute kept investors in the region cautious, despite signs of

rapprochement between the United States and Europe.

(Danilo Masoni)

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