LIVE MARKETS-Tech stocks may be about to outperform even more

* European stocks in positive territory

* Shares get boost from U.S.-China trade talks

* Industrial goods and services stocks up 1.8%

May 8 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (thyagaraju.adinarayan@thomsonreuters.com), Joice Alves (joice.alves@thomsonreuters.com) and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Stefano Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan.

TECH VS THE REST (1325 GMT)

There is a broad consensus that European bourses could be trapped in a wide range in the next few weeks, amid uncertainty about the second phase of the coronavirus crisis.

As long as earnings downgrades continue and there is the risk of a second wave of higher infection rates, volatility will remain elevated, Unicredit says in a research note.

The bank, which estimates the Euro STOXX 50 index to trade between 2700 and 3000 points over the next few weeks, also suggests tech stocks will outperform.

Here are the main reasons.

The tech industry is less cyclical than expected. While Euro STOXX 50 earnings have been lowered by more than 30% since the beginning of the COVID-19 pandemic, earnings in the technology sector have been revised down by only 17% so far.

The migration to new technologies will continue regardless of overall economic conditions and current social distancing requires more technology usage in everyday life.

(Stefano Rebaudo)

GERMAN COURT RULING ON ECB AND THE BUNDESBANK (1001 GMT)

A ruling seen to curb European Central Bank power to buy government bonds, but the German top court ruling earlier this week might paradoxically create issues for the Bundesbank while the European Central Bank is free to go on with its plans.

The Constitutional Court said the ECB had overstepped its mandate and ruled that the German central bank must quit its bond purchase scheme within three months unless the ECB can prove its necessity.

BofA argues in a research note that the ECB could decide to stay "entirely out of the German constitutional debate and let the Bundesbank cope with" the Court considerations.

In a "'benign' interpretation, we could even argue that with the problem now really put in a 'Germany box', the ECB could act more freely than before," it adds.

Because how the country will deal with constitutional issues between the government, Parliament and central bank will be a "German problem and potentially a big one."

BofA sticks to its previous forecast on PSPP (Public Sector Purchase Programme) and PEPP (Pandemic Emergency Purchase Programme), which it expects to double by year end.

President Christine Lagarde said on Thursday the ECB was "undeterred" by the ruling and would do whatever was necessary to achieve its mandated goal, which is to bring inflation back to a target of just under 2%.

(Stefano Rebaudo)

OPENING SNAPSHOT: ING GROEP AND SIEMENS ON THE RISE

European bourses are trading in positive territory after U.S. and Chinese trade negotiators agreed to strengthen cooperation, but investors are cautious ahead of U.S. monthly unemployment data.

The pan-European Stoxx 600 index is up 0.5%.

Siemens and ING Groep are among the winners of the session. Despite their results showing they were badly hit by the coronavirus crisis, they were better than analysts' expectations.

The whole industrial goods and services sector is bouncing back, up 1.8%.

Rheinmetall is up more than 2%, as it sees significantly lower sales and profits this year, but confirms the outlook for its defence division.

There is a modest 1% rise for Cellnex after a 64% increase in first-quarter core earnings and the confirmation of its 2020 outlook.

(Stefano Rebaudo)

ON THE RADAR: SIEMENS, ING GROEP, SAFRAN, CELLNEX

A cautiously positive session is expected today amid signs of easing tensions between the U.S. and China and ahead of April U.S. unemployment numbers, which are forecast to show a rate at 16% due to the lockdown.

On the corporate front, Siemens ditched its 2020 guidance, posted an 18% drop in industrial profit and said it expected a stronger impact from the coronavirus pandemic in the weeks ahead, but shares are up 1.8% in early trade.

ING Groep first-quarter pretax earnings fell by 35.7% due to higher bad loan provisions and lower valuations.

Safran laid off 3,000 employees in Mexico as the aerospace industry faces an unprecedented crisis.

Rheinmetall expects significantly lower sales and profits this year but upheld the outlook for its defence division.

Lufthansa confirmed it was negotiating with Germany's government a 9 billion euro ($9.71 billion) bailout.

Instone Real Estate is down 2.2% in early trade after it suspended its guidance. Leonardo braces for higher virus impact in Q2, after posting a loss in Q1.

On a brighter note, Europe's largest mobile phone towers operator, Cellnex, posted a 64% rise in first-quarter core earnings and kept its positive 2020 outlook.

(Stefano Rebaudo)

MORNING CALL: POSITIVE MOOD ON U.S.-CHINA TALKS

European futures are comfortably in the black as fears of a new spat between U.S. and China faded, while stronger than expected export data from China continued to fuel hopes that an economic recovery has already started.

U.S. numbers to be released later on Friday are expected to show that the April unemployment rate jumped to 16%, due to the lockdown.

Chinese state media reports said U.S. and China trade representatives held a phone call and pledged to cooperate in carrying out the countries' Phase 1 trade deal.

The London stock exchange today is closed for a public holiday while continental Europe is open.

(Stefano Rebaudo)

(Reporting by Joice Alves, Stefano Rebaudo, Julien Ponthus and Thyagaraju Adinarayan)