LIVE MARKETS-Trade: China comes to the rescue

* China's conciliatory statement boosts European stocks * STOXX 600 +0.2%, FTSE 100 +0.3% * Luxury and food & beverage sector under pressure as WTO ruling on EU tariffs looms * Pearson and Imperial Brands slump on profit warnings Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net TRADE: CHINA TO THE RESCUE (0735 GMT) The opening losses this morning amid general gloom over U.S. tariffs and a torrent of profit warnings suddenly evaporated as soon as some conciliatory comments over trade crossed the wires from Beijing's Commerce Ministry. European stocks are now up 0.2% as investors cheer the warm comments, boosting in particular trade-sensitive autos, tech and industrial stocks. But gains are however limited on renewed expectations the WTO will officially authorise U.S. tariffs on European goods imports due to subsidies provided to Airbus - part of a two-way trade spat likely to lead next year to EU tariffs over U.S. subsidies to Boeing. Luxury and food & beverage stocks are on the backfoot this morning on EU tariff worries. While, trade takes centre stage in broad index-based moves, some poor earnings updates are roiling some London blue-chip stocks: Pearson -13% (top faller), Imperial Brands -8.5% and British Airways-owner IAG -2% after their profit warnings. Among other single stock movers, ABN Amro is deep in red after the Dutch Bank said it is subject to money laundering investigation, joining many other European rivals that have been hit by similar charges. Local rival ING Groep last year agreed to pay $900 million to settle a money laundering case. (Thyagaraju Adinarayan) ***** EUROPE UNDER PRESSURE AS WTO RULING ON TARIFFS LOOMS (0657 GMT) It's all about trade. Stock futures point to a slightly lower open for Europe this morning on expectations the WTO will officially authorise U.S. tariffs on European goods imports due to illegal state aid provided to Airbus. Reuters reported earlier this month that the WTO had accepted the U.S. request, with a deadline for an official ruling set for Monday. Few details have emerged about the U.S. plan, but Bloomberg reported, citing sources, WTO is likely to authorise tariffs on $8 billion worth of European goods. Those worries are offsetting potential gains from U.S. President Trump's comments last evening that a U.S.-China trade deal could happen "sooner" than people think. In corporate news, Ericsson shares are seen opening 2% lower after the Swedish telecom equipment maker said its Q3 results will be hit by a 12 billion Swedish krona ($1.23 billion) provision it was making for U.S. investigations linked to the company's compliance with the U.S. Foreign Corrupt Practices Act (FCPA). Pearson shares are seen down 3%-4% after the British education company said full year profit is expected to come in at the bottom of its guided range due to weaker-than-expected trading in its U.S. higher education courseware business. Imperial Brands shares are seen opening 5%-7% lower after it slashed full-year outlook citing weakness in new generation products. The news is likely to weigh on rival British American Tobacco's shares. British Airways-owner IAG is seen sliding 3% as it warned on profits after pilot strikes led to thousands of cancelled flights and disruptions at the airline. It may drag other airlines with it. Dutch bank ABN Amro seen down 3% after it said it is subject to an investigation for failing to prevent money laundering over a long period of time. U.S. chemical company HB Fuller's warning overnight is likely to put pressure on shares of European rivals Henkel and Sika, according to dealers. Key headlines: Swiss competition authority OKs Sunrise plan to buy Liberty Global's UPC Former Danske Estonia boss found dead amid money laundering inquiry Ericsson makes $1.2 bln provision to settle U.S. probes, flags Q3 hit BRIEF-Hella Confirms 2019/2020 Outlook After Q1 Adjusted EBIT Decline BRIEF-EssilorLuxottica says profits to grow faster than sales in long term Pearson warns on profit on weak U.S. trading Dutch prosecutors confirm money laundering probe at ABN Amro British Airways owner IAG expects lower profit, cites major strikes (Thyagaraju Adinarayan) ***** FLAT AS PANCAKE (0523 GMT) European stocks are expected to open nearly unchanged as investors await more clarity on U.S.-China trade deal after President Trump said deal could happen sooner than people think. Positive trade deal comments helped stocks halve their losses last evening, but those gains seem to be short-lived. Financial spreadbetters IG expect London's FTSE to open 6 points lower at 7,284, Frankfurt's DAX to open 5 points higher at 12,239, and Paris' CAC to open 1 point lower at 5,583. U.S. final Q2 GDP numbers and weekly jobless claims are the key data points to watch out for this afternoon. (Thyagaraju Adinarayan) ***** (Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)