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LIVE MARKETS-Trade hopes add fuel to European gains

* European shares rally on report China open to partial US trade deal * STOXX 600 up 0.5%, DAX up 1% after hitting one-week high * Fed's Powell says open to more rate cuts, eyes on FOMC minutes * Solid update lifts food deliverer, GVC gains * US futures point to positive Wall Street start 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: TRADE HOPES ADD FUEL TO EUROPEAN GAINS (1047 GMT) Stocks in Europe, and trade-sensitive Germany in particular, got quite a jolt earlier after a report that Beijing was ready for a partial truce with Washington kindled hopes that the next round of official talks between China and the United States kicking off tomorrow will result in a deal of some sort. It added further fuel to gains triggered by comments from Fed chairman Powell overnight that the U.S. central bank will be ready to cut rates further if the economy deteriorates further. The conciliatory signs over trade have offset a move overnight by Washington to impose visa restrictions on Chinese officials for the detention or abuse of Muslim minorities, the latest to anger Beijing this week coming after it blacklisted some Chinese firms. Frankfurt's DAX 30 got the biggest boost, rising as much as 0.8% in a matter of seconds. The bourse is now up 1.1%. "China being open to partial trade deal have seen U.S. futures trading higher and could explain the pick-up in Europe this morning," says Rory McPherson, head of investment strategy at Psigma. The market may be getting a little ahead of itself. U.S. President Trump has said he's not keen on a partial deal, pushing instead for one that ends the spat in its entirety. "There's usually some rough and tumble ahead of a meeting. The closer Trump gets to the election, and if you see the U.S. economy suffering, there is a chance of a partial deal down the line," says Josh Mahony, analyst at IG. A partial deal is unlikely to include anything contentious like resolving disagreements over intellectual property, but crucially for the market, it may include pledges by China to buy more U.S. agricultural produce, in exchange for Washington delaying further tariffs on Chinese imports due on Oct. 15. Anything that avoids further punitive duties, which have crimped global trade and damaged the global economy, would be a huge relief to the market. "The market would certainly be positive about a trade deal, even if it's just a partial one. The market cares about the tariffs, it wants some sense of normality," says Mahony. Here's a chart showing the jump in the DAX earlier: (Joice Alves and Josephine Mason) ***** CHINA: LOOKING BEYOND THE TRADE WAR (0959 GMT) Well it actually looks very, very good if you ignore the current tug of war between the world's two biggest economies, at least that's according to Richard Titherington, chief investment officer for JP Morgan AM's EM equities. "We've been big supporter of investing in Chinese equities for a very long time", and that's not about to change, he told the audience at the asset manager's International media summit in London today. "The key story for me about China is the transformation of China from an export orientated economy towards a domestic consumption oriented economy", he says, adding that China's vulnerability to trade war risks has been exaggerated by the investment community. He adds that within China, real estate looks particularly attractive. If you take into account that tensions between the Trump administration and China could deflate pretty soon as suggested this morning, the investment case could even look stronger. As we speak, European bourses are riding higher on such that hope with the STOXX 600 up 0.8%. (Julien Ponthus and Thyagaraju Adinarayan) ***** EUROPE'S CASH PILE WHETS ASSET MANAGERS' APPETITE (0843 GMT) While European stocks markets may have been underperforming their U.S. peers for some years now, the cash piles laying unused across the continent, particularly in Germany, are whetting the appetite of big asset managers such as JP Morgan AM. Despite negative interest rates and local banks starting to charge clients for holding too much cash, the typical European saver has a strong bias in favour of cash in comparison to the U.S., notes Patrick Thomson, chief executive officer for EMEA. Looking at the slide provided at the JP Morgan AM's International Media Summit, there are arguably quite some growth opportunities given the risk adverse profile of Europe. (Julien Ponthus and Thyagaraju Adinarayan) ***** OPENING SNAPSHOT: SEARCHING FOR DIRECTION (0731 GMT) Selling pressure has indeed stabilised but Europe was lacking a bit of direction at the open with the STOXX 600 trading just around parity in early deals and sectoral indexes showing muted moves. The major indices are now gaining some momentum, with Germany's DAX up 0.5% and the STOXX 600 up 0.3%, but investors are staying on the sidelines ahead of the start of another round of high level trade talks between the U.S. and China tomorrow and there is little hope of any breakthrough. There are some bright spots in earnings, however, with Dutch online food delivery company reporting an 87% increase in third-quarter orders. Its shares are up 3% to the top of the STOXX and UK peer Just Eat, which is merging with the company, is also supported. GVC is gaining 2.6% after the Ladbrokes-owner raised its full-year core earnings forecast for the second time in three months, as betting shops proved resilient despite tighter regulation and online gambling rose. Here's your earnings snapshot: (Danilo Masoni) ***** WHAT'S ON OUR RADAR AT THE OPEN (0702 GMT) European shares are expected to stabilise this morning, although worries over mounting tensions between Washington and Beijing ahead of high level talks persist, likely limiting any gains, as the outlook for earnings growth deteriorates further. After main regional benchmarks suffered losses of around 1% on Tuesday, futures on main European indexes are trading between a rise and a fall of around 0.1%. According to the latest I/B/E/S Refinitiv data, European companies are expected to report a 3% drop in Q3 earnings, worse than the 2.2% fall expected a week ago. That fall would be the third in a row, prolonging an earnings recession in Europe. Shares in Plastic Omnium are expected to be heavily hit after the plastic processing group with business in the automotive and environment sectors cut its FY operating margins target. Dealers expects the shares to open down 3-10%. Elsewhere in results the picture is not so bad. A solid update from, which reported an 87% increase in Q3 orders, is set to lift shares in the online food delivery company with a positive read-across for UK's Just Eat. Takeaway is in the process of merging with the UK company. Good-looking updates also from Cropenergies, GVC, Codemaster and OMV, all seen rising at the open. In another sign of how Hong Kong tensions are taking their toll on the luxury industry, a Daily Telegraph report that Burberry is braced for 100 million pound ($122 million) hit to sales from the protests in the former British colony are seen sending its shares down 1% at the start. After the market close today, LVMH will report its own update. Meanwhile, China's state media criticised the iPhone maker Apple for an app used by Hong Kong protesters. That has weighed on Apple suppliers in China and could also dampen the mood for European names such as ams and Dialog Semi. Other stock movers: Kingfisher names Bernard Bot as finance chief; Renault to start search for new CEO - Le Figaro; Italian prosecutors seek trial for BT Italy, former execs in fraud case; EDF’s Flamanville nuclear plant faces 1.2 bln euros in added costs; GSK recalls popular heartburn drug Zantac globally after cancer scare (Danilo Masoni) ***** EUROPE'S SELL-OFF SEEN CALMING DOWN (0530 GMT) After trade and Brexit angst caused heavy and widespread losses, European shares are set to stabilise somewhat this morning, with spreadbetters pointing to slight gains at the open. Sentiment however remains fragile with shares in Asia falling the most in a week amid little signs that the dispute between Washington and Beijing could come to an end. "Escalating tensions between the US and China painted the equity markets in red, as investors finally surrendered to the idea that the US-China talks may not lead to a deal at this week’s high-level negotiations," says Ipek Ozkardeskaya, analyst at LCG. The pan-European STOXX 600 fell 1.1% yesterday. Spreadbetters at IG expect London's FTSE to open 23 points higher at 7,166, Frankfurt's DAX to open 28 points higher at 11,999, and Paris' CAC to open 21 points higher at 5,477. (Danilo Masoni) ***** ($1 = 0.8194 pounds) (Reporting by Danilo Masoni, Joice Alves, Josephine Mason, Julien Ponthus and Thyagaraju Adinarayan)