LIVE MARKETS-Trade tensions: this is only a taster for Europe

* European shares little changed

* Tech stocks weighed on Wall St, Asia

* Credit Suisse (IOB: 0QP5.IL - news) , StanChart (HKSE: 2888-OL.HK - news) , BP earnings in focus

LONDON, July 31 (Reuters) - Welcome to the home for real-time coverage of European equity

markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on

Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net

TRADE TENSIONS: THIS IS ONLY A TASTER FOR EUROPE (1044 GMT)

Analysts were quick to put part of the blame of the Eurozone's disappointing GDP figures

this morning (see) on trade war tensions.

"Trade uncertainty seems to have already had a significant effect on the Eurozone economy in

Q2", wrote ING.

But according to Morgan Stanley (Xetra: 885836 - news) analysts, things could still get way worse from here.

If there is a "full-blown escalation" -- U.S. imposes broad-based 25 percent tariffs on all

imports from China and Europe and a respective retaliation -- Morgan Stanley sees 28 percent

downside to the European index.

"The biggest impact is likely to be felt through disruption to supply chains as over 40% of

EU companies' cost bases located outside Europe," Morgan Stanley writes in a note to clients.

Tariff tensions have already been a major story of the European earnings season

and more than a dozen companies including Siemens Healthineers, Electrolux

or Assa Abloy (LSE: 0R87.L - news) have announced potential cost implications or related supply

disruptions.

European companies are more vulnerable to a global escalation in trade tensions than other

regions, due to their strong exposure to foreign rather than domestic sales, Morgan Stanley

analysts argue.

(Thyagaraju Adinarayan with Julien Ponthus)

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"LUXURY STOCKS ARE EUROPE'S FANGS" (0951 GMT)

Christopher Potts, head of economics & strategy research, has downgraded luxury stocks for

the second time this year, describing the group as "Europe's FANGs" - an epithet which does not

augur well following the historic drop in Facebook (NasdaqGS: FB - news) shares earlier this month.

"Investors should not be reluctant to take profits when they have them," says Potts in his

latest strategy update released this week.

"It seems to us that even the late-cycle growth stars are not immune from this rule. At the

beginning of July we applied the profit-taking rule to the year's most successful growth

surrogates in the European equity space: the luxury goods stocks," he notes.

The second downgrade (to underweight from neutral), he says, is meant to reinforce this

message, while also highlighting the risks of being invested into relatively expensive and

widely owned stocks with big growth exposure to China.

(Danilo Masoni)

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OPENING SNAPSHOT: THE ACTION IS UNDER THE SURFACE (0715 GMT)

Benchmark indexes are little changed at the open with the STOXX just flat but that

is masking bigger moves for single stocks which are being driven mostly by a flurry of earnings

updates. In the snapshot you can see the top ten movers on the pan-European benchmark.

Travis Perkins (Frankfurt: 893509 - news) is the leading faller after the building materials supplier cut its

profit outlook while a stronger than expected update is lifting Italian aerospace and defence

contractor Leonardo to the top spot among gainers.

Rexel (LSE: 0KBZ.L - news) is also up after results, while Vivendi (LSE: 0IIF.L - news) is getting a welcome boost

from news it is considering selling up to half of its UMG music division to one or several

strategic partners. Outside the top ten, BP rose 0.4 percent after a solid update, while

Credit Suisse added 1.3 percent after the bank doubled its quarterly profit.

(Danilo Masoni)

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WHAT WE'RE WATCHING AHEAD OF THE OPEN (0636 GMT)

European stocks futures are pointing to a second session of declines as a slide in

heavyweight tech stocks on Wall Street dampens sentiment.

The earnings season powers ahead in Europe with big hitters Credit Suisse, StanChart and BP

giving updates.

One early indication sees Credit Suisse shares rising 2 percent after the lender more than

doubled its second-quarter net profit as its overhaul bears fruit.

But things aren't looking so good for several British stocks, with Thomas Cook (Frankfurt: A0MR3W - news) expected to

come under pressure after the warm weather knocked its profit forecast, while Travis Perkins has

lowered its profit outlook on a weak DIY market.

Around 40 percent of the way through the earnings season and half of MSCI EMU firms have

beaten analysts' expectations, with reported actual y-o-y earnings growth clocking in at 8.6

percent, according to I/B/E/S data.

Here are some additional headlines:

BP Q2 profit above expectations at $2.8 bln

Warm UK weather takes toll on Thomas Cook's profit forecast

Britain's Just Eat (Frankfurt: A1100K - news) raises full-year revenue forecast

Travis Perkins lowers profit outlook on weak DIY market [nL5N1UR1DT

EDF H1 core earnings up 18 pct on nuclear, hydro rebound

Britain's Centrica (Frankfurt: A0DK6K - news) sticks to dividend as H1 earnings edge up

Chairman Agarwal makes firm offer to buy rest of Vedanta

(Kit Rees)

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EUROPEAN STOCKS FUTURES DIP (0608 GMT)

It looks like we're set for another muted session as European stocks futures open slightly

lower across the board. The focus is going to be very much on earnings this session - see below

some early headlines as the results roll in.

Credit Suisse doubles Q2 profit

StanChart profit jumps 34 pct as restructuring pays off

Genzyme sales help Sanofi (LSE: 0O59.L - news) deliver Q2 stable earnings

Lufthansa (Xetra: LHAB.DE - news) upbeat on pricing, helped by North Atlantic routes

Vivendi considers selling half its UMG music "jewel"

Fresenius (Swiss: FRE-EUR.SW - news) nudges up Kabi earnings guidance

GAM suspends investment director after internal probe

HeidelbergCement Q2 operating profit rises 3 percent

Erste Group's Q2 net profit rises more than expected

Belgium's Umicore (Hamburg: 3771399.HM - news) beats estimate on strong battery materials growth

Lundin Petroleum Q2 core profit beats expectations, opex falls

Solvay (LSE: 0NZR.L - news) beats core profit forecasts as volumes offset currency headwinds

Rio Tinto (Hanover: CRA1.HA - news) signs preliminary deal for Uganda base metals JV

Petrofac (Amsterdam: PF6.AS - news) to sell 49 pct of Mexican operations

French fashion group SMCP raises 2018 sales growth guidance

Ferrari (Xetra: 30092157.DE - news) bets on tobacco veteran in post-Marchionne era

(Kit Rees)

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MORNING CALL: EUROPEAN SHARES SEEN OPENING SLIGHTLY LOWER (0537 GMT)

Good morning. European stocks are seen continuing the previous session's decline with a

slightly negative open, according to financial spreadbetters, as investors focus on a flurry of

earnings updates from companies including Credit Suisse, Standard Chartered (BSE: 580001.BO - news) and BP.

Financial spreadbetters see Britain's FTSE 100 opening 0.1 percent lower, France's CAC

edging 0.1 percent lower and Germany's DAX opening flat.

Tech stocks soured the mood on Wall Street ahead of Apple (NasdaqGS: AAPL - news) 's earnings, while in Asia Hong

Kong stocks tracked their U.S. counterparts lower.

(Kit Rees)

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