LIVE MARKETS-Time to re-engage with defensives?

* European shares edge up

* STOXX hit 1-week low in previous session

* Trump says wants a strong dollar

Jan 26 (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

TIME TO RE-ENGAGE WITH DEFENSIVES? (1030 GMT)

According to Deutsche Bank strategists, it is.

In their latest update they affirm their overweight stance on defensives versus cyclicals

and upgrade utilities from benchmark to overweight: "Defensives have sold off by more than would

have been suggested by the rise in bond yields".

That being said they point to property firms Vonovia and Deutsche Wohnen,

tobacco group Imperial Brands and beer company Heineken as buy-rating stocks

that are beneficiaries of a renewed fall in bond yields.

For those who instead believe yields should continue to rise, they highlight BNP Paribas

, Credit Suisse, Saint Gobain and AXA.

(Danilo Masoni)

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OPENING SNAPSHOT: EUROPE BOUNCES BACK (0835)

European shares have opened higher this morning, bouncing back from a one-week low hit in

the previous session, as the euro pulled back from a 3-year high. In corporate news, a

well-received update from LVMH a dividend increase at Telia and upbeat broker notes for Michelin

and Thales are helping the STOXX 600 index rise 0.3 percent.

Here's your opening snapshot:

(Danilo Masoni)

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WHAT YOU NEED TO KNOW BEFORE EUROPE OPENS (0744 GMT)

European shares are expected to bounce back on Friday with main stock index futures pointing

to gains of around 0.3 percent. Such gains however would not be enough to prevent the STOXX 600

from scoring its first weekly loss this year.

Luxury goods makers will be in focus after LVMH said it had made a favourable

start to 2018 after a revival in Chinese demand boosted sales last year and spurred on some of

its major brands like Louis Vuitton. Its Q4 like-for-like sales were higher than forecast.

There were strong results and a bullish forecast from Intel, which could help ease market

jitters about semiconductor demand, while Commerzbank could be supported after

Handelsblatt reported that Goldman, Barclays and SocGen are interested in buying its EMC

division.

Eyes also on Zalando and Ocado after big price target increases by RBC.

Other stock movers:

Telecom Italia deputy chairman gives up operational powers - sources

Nestle to cut 400 jobs in France

CFM says LEAP engine output 4-5 weeks behind schedule

Telia Q4 core profit matches forecasts

SSAB Q4 operating profit lags forecast, proposes first dividend since 2012

Givaudan confirms targets after double-digit profit rise

BRIEF-Autoliv announces goodwill impairment in Autoliv Nissin Brake

(Danilo Masoni and Tom Pfeiffer)

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EUROPE STOCK FUTURES EDGE UP (0715 GMT)

The euro is rising again this morning but remains below the fresh three-year peak of

$1.25 hit yesterday, with the dollar recovering following U.S. President Donald Trump's Davos

forex "coup de theatre".

Just one day after his Treasury Secretary Steve Mnuchin sent the dollar plunging, Trump

surprised markets by saying in a CNBC interview he "ultimately" wanted a strong dollar. You can

watch the interview here: https://goo.gl/iyNhLt

The euro pull-back is set to help European shares this morning, with futures on main

regional benchmarks all rising around 0.3 percent.

(Danilo Masoni)

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LUXURY GOODS MAKERS IN FOCUS AS LVMH SOUNDS UPBEAT (0643 GMT)

Luxury goods makers could be among the stocks to watch today after LVMH said it

had made a favourable start to 2018 after a revival in Chinese demand boosted sales last year

and spurred on some of its major brands like Louis Vuitton.

Here in bullets the key highlights from results at the world's biggest luxury goods maker.

* Operating profit up 18 pct in 2017, as expected

* Q4 like-for-like sales higher than forecast

* Chinese demand continues to boost luxury goods market

(Danilo Masoni)

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MORNING CALL: EUROPEAN SHARES SEEN STEADYING (0621 GMT)

Good morning and welcome to Live Markets. Following losses in the previous session, European

shares are expected to open little changed today as the battered dollar won back some ground

after President Donald Trump surprised markets by saying he wanted a strong U.S. currency.

Financial spreadbetters expect London's FTSE to open 2 points lower at 7641.6 points,

Frankfurt's DAX to open 16 points higher at 13430.5 point and Paris' CAC to open 1 point higher

at 5496 points.

(Danilo Masoni)

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(Reporting by Danilo Masoni, Julien Ponthus, Kit Rees, Helen Reid)