LIVE MARKETS-What's on the radar: an attempted bounce

Dec (Shanghai: 600875.SS - news) 28 - 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: helen.reid.thomsonreuters.com@reuters.net

WHAT'S ON THE RADAR: AN ATTEMPTED BOUNCE (0736 GMT)

European stocks are set for a strong open on Friday after a recovery bounce in the U.S. and

Asia, though whether the region will be able to hold on to early gains remains an open question

as a turbulent and holiday-shortened week draws to a close.

Futures opened up 0.7 percent to 1 percent, indicating a substantial bounce from levels on

Thursday when the STOXX 600 hit its lowest level since Nov 9 2016 – the day Donald Trump’s

election as U.S. President triggered a broad rally as investors piled into a “Trumpflation”

trade across markets.

Threats still lurk, however, with the U.S. government shutdown ongoing after a brief meeting

of Congress Thursday afternoon took no steps to end it.

Further signs of a souring in U.S.-China relations over technology could also keep a lid on

any optimism: sources told Reuters Trump is considering an executive order in the new year to

declare a national emergency that would bar U.S. companies from using telecomms equipment made

by China’s Huawei and ZTE (Xetra: A0M4ZP - news) .

(Helen Reid)

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EUROPEAN FUTURES RISE AFTER U.S., ASIA RELIEF RALLY (0717 GMT)

Futures for European benchmarks opened up strongly, between 0.7 and 1 percent, though

they've already lost some steam with DAX futures now up 0.5 percent.

On the companies front, a profit warning from British inkjet technology maker Xaar (LSE: XAR.L - news) will

likely drive the shares down sharply, while M&A activity continues after yesterday's big news of

Vinci (LSE: 0NQM.L - news) 's $3.7 billion swoop on Gatwick Airport.

The founding family of Italian jewellery group Casa Damiani said it would launch a takeover

to buy it and delist it from the Milan bourse.

Here's a sweep of the biggest corporate news today:

Carige's top investor meets ECB after blocked cash call - sources

Founding family launches takeover to delist Casa Damiani jewellery group

Rio Tinto (Hanover: CRA1.HA - news) says no job cuts in 2019 due to driverless train project

Xaar Says Now Expects H2 Rev To Be Only Slightly Better Than H1

Renault (LSE: 0NQF.L - news) union calls for more transparency over Dutch holding

(Helen Reid)

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U.S. BOUNCEBACK TO LIFT EUROPEAN STOCKS (0652 GMT)

A strong rally in U.S. stocks is likely to drive Europe up this morning after a terrible

trading week shortened by Christmas holidays.

The STOXX hit its lowest level since Nov 9 2016 yesterday and lost 1.7 percent, but the S&P

and Dow's gains of more than 1 percent should help lift sentiment - though concerns around the

ongoing U.S. government shutdown and U.S. plans to ban Huawei and ZTE purchases will keep a lid

on optimism.

Asia stocks advanced after Wall Street ended volatile trade in positive territory, adding to

the previous session's big gains, although lingering investor jitters helped support safe-haven

currencies such as the yen.

Volatility in euro zone stocks rose to a high of 26.88 yesterday, the volatility

gauge's highest level since Feb 13 when the market was recovering from a sudden spike in the

VIX.

(Helen Reid)

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(Reporting by Helen Reid, Danilo Masoni, Julien Ponthus)