LIVE MARKETS-What we're watching at the open

* European shares seen opening higher

* China, U.S. to hold trade talks in October

* Asia shares extend gains on trade deal hopes

* German industrial orders fall more than expected 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: rm://danilo.masoni.thomsonreuters.com@reuters.net

WHAT WE'RE WATCHING AT THE OPEN (0703 GMT)

European shares are set to extend yesterday's rally to fresh one-month highs with news that China and the U.S. agreed to hold high-level trade talks in early October lifting spirits and sending futures up 0.5-0.8%.

Economic data however continues to show a gloomy picture with German industrial orders falling more than expected in July just ahead of next week's ECB meeting where the central bank is expected to unveil a comprehensive stimulus package.

On the corporate front, some positive news could lift the aero-defence sector. France engine maker Safran raised its full-year profit forecasts, seen boosting its shares by as much as 7%, and Dassault Aviation, the maker of Rafale warplanes and Falcon business jets, stuck to its 2019 target of higher net sales. Its shares are expected to rise 2%.

Also underscoring the health of the sector is the promotion to the DAX 30 of aircraft engine maker MTU Aero Engines replacing industrial conglomerate ThyssenKrupp . MTU Aero Engine are up 2% in premarket.

In other earnings updates, CYBG is set to fall sharply after the British bank said it expected to increase its provision for legacy payment protection insurance. Its Australia-listed shares fell as much as 22.5% to a new record low.

Boohoo instead is seen rising 3-5% after the British online fashion retailer said it was trading ahead of expectations and raised its full-year revenue growth forecast.

A $5 bln share buyback is good news for investors in oil group Equinor, which also announced an earlier-than-planned start-up for the Johan Sverdrup oilfield, the largest North Sea discovery in more than three decades. Equinor shares are seen rising 2%.

Eyes also on UBS after the FT reported that Switzerland's biggest bank is planning to revamp its investment arm. Data from industry analyst Coalition show that the world's largest investment banks have had their worst start to a year since 2006 with revenues down 11%.

UK headlines:

Go-Ahead reports lower annual profit as rail unit falters

William Hill CEO Philip Bowcock to leave

Melrose sees continued weakness in global automotive sector in H2

British online retailer Boohoo raises full-year forecast

Mobile phone sales plunge at Britain's Dixons Carphone

Oil firm EnQuest chips away at debt, plans drilling

CYBG Says Expects To Increase Provisions For Legacy PPI Costs By Between £300 Mln And £450 Mln

Network International majority owners sell down part of stake

(Danilo Masoni)

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EUROPEAN FUTURES RISE, AERO-DEFENCE RESULTS IN FOCUS (0616 GMT)

Futures are pointing to healthy gains at the open this morning with gains of between 0.5%-0.7%, while turning to corporate news there are some good-looking updates in the aero-defence sector.

France engine maker Safran raised its full-year profit forecasts and Dassault Aviation, the maker of Rafale warplanes and Falcon business jets, stuck to its 2019 target of higher net sales.

Also underscoring the health of the sector is the promotion to the DAX index of aircraft engine maker MTU Aero Engines in replacement of industrial conglomerate ThyssenKrupp.

A $5 bln share buyback is good news for investors in oil group Equinor, which also announced an earlier-than- planned start-up for the Johan Sverdrup oilfield, the largest North Sea discovery in more than three decades.

In M&A news, German utility E.ON said it would seek to squeeze out minority shareholders in takeover target Innogy as soon as it secures European antitrust approval, while in the Netherlands, the consumer watchdog rejected a proposed merger between PostNL, the country's largest mail carrier, and its main rival Sandd.

In airlines, UK unions at Ryanair announced a further seven days of strikes.

Here's your full earnings headlines round-up:

Safran raises profit forecasts after strong H1

Dassault Aviation keeps 2019 targets as profits rise

Thyssenkrupp to leave Germany's blue chip index DAX; MTU Aero joins

Equinor plans early Sverdrup start-up, $5 bln share buyback

M&S, Direct Line and Micro Focus will be booted from FTSE 100 on Sept. 23

Big investment banks have worst start to year since 2006

UBS plans revamp of investment bank after falling profits - FT

Hellman & Friedman, Blackstone sell 6.2% stake in Scout24

Brazil judge orders Bayer to deposit $69 mln in soy patent dispute

Ryanair UK unionised pilots call seven more strike days

IAG names Fernando Candela as CEO of low cost airline Level

(Danilo Masoni)

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TRADE HOPES SEEN LIFTING EUROPEAN SHARES (0531 GMT)

It looks European stock markets are set for another risk-on day after China and the United States agreed to hold high-level trade talks in early October in Washington.

The announcement by China's commerce ministry -- which follows well-received geopolitical news in UK, Italy and Hong Kong yesterday -- boosted Asian shares overnight and the positive mood is seen spreading to Europe at the start of trading.

Financial spreadbetters at IG expect London's FTSE to open 26 points higher at 7,337, while Frankfurt's trade-sensitive DAX is seen rising 107 points to 12,132, and Paris' CAC to open 47 points higher at 5,579.

Later in the session the focus will turn to the U.S. ISM services survey.

"Any weakness in that series on the back of the sub-50 manufacturing print would be really bad news," writes Rabobank.

(Danilo Masoni)

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