LIVE MARKETS-Telecoms take the lead after 5G auction, European stocks slip

* STOXX 600 down 0.1% * 1&1 Drillisch jumps 12% after buying first ever 5G spectrum * Ferguson climbs 5.1% after Trian Investors take stake June 13 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Helen Reid. Reach her on Messenger to share your thoughts on market moves: helen.reid.thomsonreuters.com@reuters.net TELECOMS TAKE THE LEAD AFTER 5G AUCTION, EUROPEAN STOCKS SLIP (0730 GMT) European shares are edging down in early deals with banks leading the falls as investors' expectations of rate cuts from the Fed hurt lenders which benefit from higher interest rates. The market's pricing of a dovish turn from the world's leading central banks has helped equities higher over the past week, but stocks have paused as investors cash in gains and face up to lingering concerns over growth. Telecoms are the top-performing, up 0.5% after Germany's 5G mobile spectrum auction. 1&1 Drillisch shares are jumping 12% with parent company United Internet up 8.7%. Telefonica Deutschland is up 3.1%, with Deutsche Telekom bringing up the rear, up only 0.6%. All this excitement in telecoms has helped the sector overtake banks in year-to-date returns. Telecoms are now down just 0.1% year-to-date, against a 0.2% fall for the banks sector. Aurubis, Europe's largest copper producer, is down 10.1% after it warned on profits late yesterday and said its CEO would leave immediately. Ferguson shares are up 5.5%, top of the FTSE 100, after Trian Investors 1 took a stake in the UK plumbing products company, saying it is more attractively valued than U.S. peers. French aerospace and defense company Thales is up 2.1% after it hiked its profit targets, saying its acquisition of chipmaker Gemalto helped it perform better. (Helen Reid) ***** WHAT'S ON THE RADAR: 5G WINNERS AND LOSERS, NORD STREAM 2 SANCTIONS THREAT (0657 GMT) European stocks are set to extend their falls today though futures are down just 0.2-0.3%, leaving room for the market to potentially stage a recovery later in the session. Comments from China's Vice Premier Liu He that Chinese regulators should step up support for the economy and keep ample liquidity in the financial system could provide a silver lining for the market if they’re a prelude to Beijing unveiling more stimulus policies. A milestone in Europe’s transition to 5G was reached with Germany raising 6.55 billion euros from its 5G mobile spectrum. Shares in new entrant 1&1 Drillisch are seen jumping 7-11% with parent company United Internet also up 7%. 1&1 Drillisch, until now a 'virtual' mobile player controlled by United Internet, paid 1.07 billion euros for 70 MHz, bringing billionaire CEO Ralf Dommermuth closer to his dream of running Germany's fourth operator. Traders also expect Telefonica Deutschland to rise 4% after the operator bought a 90 MHz spectrum for 1.43 billion euros. Shares in French semiconductor wafer maker Soitec are seen rising 1-5% after its full-year revenue and earnings figures beat expectations. UK plumbing products maker Ferguson is expected to gain 2-3% after Guernsey-domiciled investment trust Trian Investors 1 said it acquired a 5.98% stake in the company. One trading desk also says Gazprom's UK-listed shares could be hurt by U.S. President Donald Trump considering sanctions over Russia’s Nord Stream 2 natural gas pipeline. Another potential victim could be Italian oil company Eni, traders said, although a jump in crude prices after reports of a tanker attack in the Gulf of Oman may offset the impact. French aerospace & defense firm Thales is seen up 2% after it upped its profitability targets to factor in the contribution from recently acquired chipmaker Gemalto. Britain's biggest retailer, Tesco, is expected to fall 1-2% after its sales growth missed the street’s estimates, coming in at 0.4% against expectations for 0.8% growth. (Helen Reid) ***** FUTURES SLIP: EYES ON GERMANY'S 5G AUCTION, THALES, TESCO (0625 GMT) Futures for the main regional stock markets are down 0.2-0.3% in early deals as investors' deflating sentiment, and sliding oil prices, take their toll on stock prices. There was a potential silver lining as China's Vice Premier Liu He said regulators should step up support for the economy and keep ample liquidity in the financial system, suggesting Beijing may soon unveil more policies to bolster growth amid trade war pressure. In Europe, a milestone in transition to 5G was reached late yesterday, when Germany announced it raised 6.55 billion euros ($7.4 billion) from its 5G mobile spectrum auction after a near three-month battle that will see a fourth operator enter the market. Deutsche Telekom has complained about the high price and said the auction leaves a "bitter aftertaste". New 5G entrant 1&1 Drillisch is seen rising 11%, its parent United Internet is indicating 7.1% higher, while Deutsche Telekom is expected to fall 0.2%. In results news, French semiconductor wafer maker Soitec reported a sales target of around 900 million euros for the full year 2022, which dealers say will spur a rally in the shares. Aerospace & defense firm Thales upped its profitability targets to factor in the contribution from recently acquired chipmaker Gemalto. Britain's biggest retailer, Tesco, said underlying sales growth slowed in its latest quarter partly due to a tough comparative number. And Guernsey-domiciled investment trust Trian Investors 1 said it acquired a 5.98% interest in Ferguson. Tesco's UK sales growth slows in latest quarter Germany raises 6.55 billion euros in epic 5G spectrum auction French group Thales raises profit targets after Gemalto takeover BRIEF-Soitec Eyes FY 2022 Sales Of Around EUR 900 Mln Credit Suisse, UBS have boosted capital positions - SNB BRIEF-Varta Says It Successfully Concludes Capital Increase CFM wins blockbuster jet engine order from IndiGo -sources Morrisons And Amazon To Expand Delivery Services To More Cities Across UK (Helen Reid) ***** LULL IN EUROPEAN STOCKS TO CONTINUE (0525 GMT) Europe's major stock indices are expected to continue their slide today as crude prices extend their decline and doubts over the interest rate outlook creep in. Asian shares were led lower overnight as the Hong Kong market fell for second consecutive session following a day of massive street protests, while oil prices flirted with five-month lows due to higher U.S. crude inventories and a bleak demand outlook. Financial spreadbetters at IG expect London's FTSE to open 17 points lower at 7,350, Frankfurt's DAX to open 21 points down at 12,094, and Paris' CAC to open 10 points lower at 5,365. (Helen Reid) ***** ($1 = 0.8850 euros) (Reporting by Helen Reid, Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)