LIVE MARKETS-Stimulating risk appetite: a trade, Fed and Brexit mix

* STOXX 600 up 0.4%

* Strong Chinese factory data lifts markets

* Waiting for U.S. NFPs

* Slow day for Q3 res

* All Saints Day on continental Europe Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your thoughts on market moves: joice.alves.thomsonreuters.com@reuters.net

STIMULATING RISK APPETITE: A TRADE, FED AND BREXIT MIX (0958 GMT)

What's the magic mix stimulating risk appetite, which helped build up a decent performance in October?

Here's an long but comprehensive quote from a DB's October performance review which sums it up quite well:

"Risk appetite returned to markets once again in October as expectations that the U.S. and China were edging towards agreeing on 'phase one' of their trade deal, earnings season broadly bettering expectations, the Fed announcing that it would resume securities purchases to grow its balance sheet and even the latest twist in Brexit developments all combining to help to boost sentiment".

Sentiment is volatile by essence and could obviously change pretty quickly.

Today's NFPs will be key to set the tone for the beginning of November.

Anyhow, here's DB's overview of how October panned out for a panel of financial assets:

(Julien Ponthus)

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OPENING SNAPSHOT: SOME DECENT ACTION FOR A QUIET DAY (0846 GMT)

Ok, expectations were not that high for the open given the paper-thin corporate agenda but in the end, there's a decent amount of action going on across the STOXX 600.

Sure, nothing as spectacular as yesterdays drama around the PSA/Fiat Chrysler merger but still: Denmark's DVS is leading the pan-European index with an impressive 8% surge following the publication of its Q3 results.

Sweden's Loomis too is on a roll, up 7% and making the case that this Friday, it's all about the Nordics. In Amsterdam, ASM jumped 5.5% as it announced details of its buyback program.

Not all things are rosy in the North though with Danske Bank falling 4.4% on its results.

Among small caps, British car retailer Lookers is in free-fall, losing about 40% after it drastically cut its profit guidance.

The general picture of Euroopean stocks markets this morning is one of calm: main regional benchmarks are roughly up about 0.3% with all sectors in positive territory.

Here are the biggest swings on the STOXX 600

(Julien Ponthus)

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THE CALM AFTER THE STORM (0750 GMT)

Futures for the main European benchmarks are all trading in positive territory following some positive data from China and ahead of the NFPs.

After a busy week, there’s a pause in the Q3 earnings season this Friday so it’s expected to be calmer day than yesterday on the corporate front.

Among the few trading updates this morning, Danske Bank which narrowed down its full-year profit outlook, Drugmaker Novo Nordisk which reported operating profit slightly below forecast. Also O2 Czech Republic's profit decline slows in third quarter

One big mover will be British car dealership Lookers which is seen falling between 15% and 30% after it said this morning it expects profit to fall by more than two-thirds as the UK car market struggles with dwindling consumer confidence and margin pressures.

In M&A news, Lufthansa is said to be ready to invest up to 200 mln euros in Alitalia rescue.

Headlines are still coming from Italy: Insurer Cattolica ousted CEO over strategy differences.

Here are this mornings's main headlines:

Peugeot's turnaround driver, Tavares, faces his biggest challenge

Danske Bank narrows down full-year profit outlook, announces new goals

Drugmaker Novo Nordisk's Q3 operating profit slightly lags forecast

Nokia eyes Malaysian ports for 5G business as Huawei takes early lead

Lufthansa ready to invest up to 200 mln euros in Alitalia rescue - source

O2 Czech Republic's profit decline slows in third quarter

Spain's Cellnex gets storming investor support for British towers buy

Thyssenkrupp board member commits to steel ahead of unit review

(Joice Alves)

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EUROPEAN BOURSES SEEN HIGHER (0644 GMT)

European bourses are expected to open higher this morning following some positive data from China.

Asian shares reversed early losses as an unexpected bounce in Chinese manufacturing activity offset some negativity cast by yesterday's reports that Chinese officials doubt a trade deal with U.S. President Donald Trump is possible.

Spreadbetters at IG expect London's FTSE to open 31 points higher at 7,279, Frankfurt's DAX to open 68 points higher at 12,935 and Paris' CAC to open 27 points higher at 5,757.

On the corporate front, good news for green packaging companies as Britain's largest retailer Tesco said it will remove one billion pieces of plastic packaging from its stores by 2020.

(Joice Alves)

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(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)