LIVE MARKETS-Trump tweets and trillions of dollars vanish

* Chipmakers gain after U.S. eases some Huawei restrictions

* European stocks up 0.4%

* Norsk Hydro climbs 5% on Alunorte embargo lift

* Sonova hits record high after results

* Telecom Italia up 3% after results

May 21 - 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: rm://helen.reid.thomsonreuters.com@reuters.net

TRUMP TWEETS AND TRILLIONS OF DOLLARS VANISH (0928 GMT)

Global stocks have lost about $3 trillion since U.S. President Donald Trump threatened via

Twitter further tariffs on $200 bln worth of Chinese imports and eventually the tariffs came

into effect.

The tweet triggered violent moves and global equities added or gave up (mostly gave up)

half-a-trillion-dollar on average every day.

Here's a graphic showing the big swings:

Is trade war affecting just stocks, not quite.

'Game of Thrones' fans in China blamed the political tensions between U.S.-China as the

reason for delays in broadcasting the final episode.

In the real world, Bloomberg reports footwear and handbag maker Steve Madden, which sourced

more than 90% of its products in China last year, plans price hike during summer holidays due to

higher tariffs.

(Thyagaraju Adinarayan)

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A SILVER LINING FOR THE SHUNNED TELECOMS SECTOR (0813 GMT)

Telecom Italia shares are climbing 3% hitting a two-week high after its results, despite

those not seeming particularly remarkable at first glance.

Traders say the positive reaction is partly down to the deep mistrust investors have of the

telecoms sector. It's the only sector in Europe in the red so far this year - down 2.1% - as you

can see below.

"I think it's just the kind of stock that's unloved to a level where OK or not bad news is

good enough," says Ameet Patel at Northern Trust Capital Markets. "The drop in net debt is

helpful too given a stretched balance sheet is one of Telecom Italia's handful of core issue."

Berenberg analysts echo this view: "Results are broadly in line to slightly ahead, net debt

progress is encouraging, but questions will be asked about rate of fixed broadband losses."

Competition dynamics were also a positive factor.

Equita analyst Domenico Ghilotti says "higher rationality in the market is reported in the

first quarter (price increases, less aggressive use of second brand)", expected to lead to

stabilisation in ARPU (average revenue per user).

Indeed, another analyst - who declined to be named - said the Italian telecoms market is one

of the only ones in Europe where competitive pressures are in fact easing.

(Helen Reid)

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TRADE-SENSITIVE TECH STOCKS CLIMB ON HUAWEI RELIEF (0721 GMT)

It's the usual suspects gaining today as the pendulum swings again towards hopes that

escalating U.S.-China tensions may ultimately moderate. Trump's move to ease restrictions on

Huawei is boosting chipmakers Infineon, STMicro, and AMS up 1.4 to 3.5%, with the tech sector

climbing 1.1%.

The autos & suppliers sector was also a top gainer, up as much as 1.1%, but quickly

fell back to trade up just 0.5% - a sign investors aren't especially hopeful of trade tensions

more broadly being defused.

Norsk Hydro is top of the STOXX, rising 5.2% after a Brazilian court lifted its embargo on

the company's Alunorte alumina plant.

Telecom Italia is rising 3.3% after its results slightly beat expectations. The telecoms

sector is the only one in the red for this year, and with sentiment so negative any sign of

progress is very well received by the market.

Sonova is also rising 4.2% and hit a record high after it beat second-half expectations.

Here's your opening snapshot:

(Helen Reid)

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WHAT'S ON THE RADAR: TRADE WAR RELIEF, EYES ON FRESNILLO, TELECOM ITALIA (0653 GMT)

An easing of restrictions on Chinese tech company Huawei was set to deliver some relief to

European markets on Tuesday, with futures up 0.4 to 0.6%, recovering after the STOXX 600 had its

worst day in a week.

What one trader called an “austerity drive” at Daimler could help the German carmaker’s

shares up: it plans to cut administration costs by 20%, according to a Handelsblatt report

citing sources. Traders saw the stock rising around 1%.

With results slowing to a trickle, Telecom Italia stood out: Italy's biggest phone group was

hit by stronger competition in the first quarter, sending its domestic revenues and core

earnings down. Swiss hearing aid maker Sonova reported an increase in full-year sales, sending

its shares up 2% in pre-market, while the outlook was mixed for German retailer Ceconomy: Q2

earnings declined but EBITDA slightly beat expectations, while management struck a negative tone

about a challenging market environment.

Miner Fresnillo also said it expects 2019 to be more challenging than 2018, and traders saw

the stock falling 2-5% after the company missed its long-term silver target.

In the UK, mortgage competition took its toll on lender Nationwide, driving profit down,

while supermarket chain Tesco said it would stop mortgage lending at its bank unit also due to

fierce competition.

Builder Galliford Try said it would cut 350 jobs in a strategic review shifting its focus to

its "core strengths" in building, water, and highways.

And UK water utility Severn Trent warned on the impact of potential renationalisation of

water utilities, which it says remains a possibility if the government changes. It said

nationalisation may impact its ability to deliver on its strategic objectives. Its shares were

seen rising 2% after its full-year results met estimates.

(Helen Reid)

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HUAWEI RELIEF DRIVES EUROPEAN FUTURES UP (0622 GMT)

Futures are up strongly, rising 0.4 to 0.6% in Europe as an easing of restrictions on Huawei

delivers some relief to the market.

An interesting theme coming out of results in the UK: mortgage competition. Lender

Nationwide reported annual profits fell due to heightened competition in the mortgage market,

and Britain's biggest supermarket chain Tesco said it would stop mortgage lending at its bank

unit, also due to cut-throat competition.

Water utility Severn Trent also touches on a hot-button topic of the moment: the possibility

of renationalisation of utilities under an opposition Labour government. The company said

renationalisation "remains a possibility" in the event of a change of government.

Britain's Nationwide annual profit falls on mortgage market competition

Britain's Tesco to stop mortgage lending at bank unit

Severn Trent Says Renationalisation Of Water Industry Remains Possibility In Event Of Change

Of Govt

Homeserve Says Expects To Deliver "Further Strong Growth" In Fiscal 2020

(Helen Reid)

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DIA RESCUE DEAL, DAIMLER COST-CUTTING DRIVE, TELECOM ITALIA RESULTS (0558 GMT)

With results slowing to a trickle, Telecom Italia, Sonova, and Ceconomy are the main

earnings focus, while DIA and Daimler have also made headlines.

Spanish retailer DIA avoided insolvency proceedings at the last minute, agreeing a deal with

Santander after the close yesterday to secure financing.

German carmaker Daimler is on an austerity push, planning to cut administration costs by

20%, in order to reach profit margin targets threatened by global trade woes, according to a

Handelsblatt report.

And Italy's biggest phone group was hit by stronger competition in the first quarter,

sending its domestic revenues and core earnings down.

Here are your early headlines:

Spanish retailer DIA strikes rescue deal with banks

Daimler plans to cut administration costs by 20% - Handelsblatt

Telecom Italia core earnings fall 2.1% in Q1, meet expectations

HSBC plans more China tech jobs in push for market share

Sonova full year sales rise 4.4% to 2.8 bln Sfr

Ceconomy Confirms FY 2018/2019 Outlook

(Helen Reid)

*****

RESPITE FOR EUROPEAN STOCKS? (0521 GMT)

European stocks are again expected to rise at the open, but how long that will last is

debatable after yesterday's hopeful start yielded to heavy losses by the end of the day - its

worst in a week.

Asian shares won some respite on Tuesday after Washington temporarily eased trade

restrictions imposed last week on China's Huawei, although fears of a further escalation in

tensions kept investors on edge.

The U.S. government has temporarily eased trade restrictions imposed last week on China's

Huawei, a move aimed at minimizing disruption for its customers but dismissed by its founder who

said the tech firm had prepared for U.S. action.

Financial spreadbetters expect London's FTSE to open 21 points higher at 7,332,

Frankfurt's DAX to open 58 points higher at 12,100, and Paris' CAC to open 12 points higher at

5,371.

(Helen Reid)

*****

(Reporting by Helen Reid, Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)