LIVE MARKETS-What's on the radar for the European open

Feb 5 (Reuters) - 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 FOR THE EUROPEAN OPEN (0751 GMT)

A sharp sell-off in Asian trading is set to spread to Europe on Monday with stock futures

down 0.7 to 1 percent as rising bond yields continue to take their toll on stock markets near

record highs.

Euro area PMIs at 0900 GMT will give a read on whether the region is keeping up its

blistering pace of growth, but SocGen (Paris: FR0000130809 - news) analysts warned a strong reading could spell further

turbulence for stocks if it drives yields higher.

On a slightly calmer day for earnings, notable companies reporting include budget airline

Ryanair, engineering group Sandvik (LSE: 0HC0.L - news) and miner Randgold Resources.

Ryanair shares are indicated down 2 to 3 percent in pre-market after the company struck a

cautious tone on fares, while Sandvik is seen gaining 2 percent at the open after fourth-quarter

profit topped forecasts.

Fiat Chrysler shares are also seen down 3 to 5 percent after sources said the U.S.

Justice Department is seeking 'substantial' fines in the emissions case. Fiat (Hanover: FIA1.HA - news) 's U.S. shares

ended down 7.2 percent on Friday.

(Helen Reid)

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EARLY MORNING EUROPEAN HEADLINE ROUND-UP (0740 GMT)

There are some earnings updates to focus on today including from Ryanair, Sandvik and

Randgold. Below a summary of the headlines we're looking at:

Lloyds Bank to ban credit card owners from buying cryptocurrencies

Ryanair CEO warns of strikes, says some pilot demands 'laughable'

Lufthansa (Xetra: LHAB.DE - news) aims to replace top management at Brussels Airlines

Merck (LSE: 0O14.L - news) 's consumer health sale at risk as Nestle (Swiss: NESN.VX - news) bows out - sources

Infineon CEO sees no spin-offs, IPOs for units -Euro am Sonntag

Italian shipbuilder Fincantieri takes control of STX France

Activist investor Elliott sheds most of Dufry (IOB: 0QK3.IL - news) stake

MEDIA-iPhone X owners report problems with incoming calls- FT

Heathrow terminals should be opened up to competition says IAG

Broadcom (Frankfurt: 28425279.F - news) to raise Qualcomm (Swiss: QCOM-USD.SW - news) bid in push for talks, sources say

Daily Mirror owner to clinch takeover of rival titles this week -Sky (Amsterdam: BK8.AS - news)

Engie (LSE: 0LD0.L - news) board puts four candidates forward for chairman role -report

Daimler (IOB: 0NXX.IL - news) , Bosch (BSE: BOSCHLTD.BO - news) to test self-driving cars soon - Automobilwoche

Schaeffler (IOB: 0RBK.IL - news) has e-mobility orders worth $1.25 bln -Automobilwoche

MEDIA-SAP (Amsterdam: AP6.AS - news) sees good chance for 30 pct margin in 2019 -Euro am Sonntag

Fitch: Unilever (NYSE: UL - news) 's Strong 2017 Results Do Not Rule Out Downgrade

Tesco (Swiss: TSCO.SW - news) ‍says Booker's Wilson (Oslo: WILS.OL - news) to be UK and Ireland (Other OTC: IRLD - news) boss after takeover

Engineering group Sandvik Q4 operating profit tops forecast

VW seeks delay in U.S. trial after lawyer references monkey testing,

EXCLUSIVE-Merck's consumer health sale at risk as Nestle bows out - sources

Randgold 2017 profit up 14 pct, doubles dividend

BRIEF-lastminute.com Expects For 2017 Net Loss Of EUR 8-9 Mln

German coalition negotiators may drop proposal to abolish air transport tax

ANALYSIS-Deutsche Bank (IOB: 0H7D.IL - news) gambles German goodwill with bonus bonanza

(Tom Pfeiffer and Danilo Masoni)

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FUTURES POINT TO SHARP SELL-OFF IN EUROPEAN STOCKS AS YIELDS RISE (0721 GMT)

Futures have opened sharply lower across the main benchmarks, with drops of 0.7 to 1.1

percent. Meanwhile Germany's 10-year government bond yield has risen to its highest level since

September 2015 - so the yield pressure looks like it's here to stay today as well.

(Helen Reid)

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EURO AREA PMIS COULD PUSH YIELDS HIGHER (0653 GMT)

Euro area PMIs today at 0900 GMT will provide a read on growth in the region, but economists

at Societe Generale (Swiss: 519928.SW - news) reckon stocks may not take the data well even if it points to strong

activity.

"These have the potential to maintain upward pressure on yields if they suggest strong

underlying growth momentum. Strong growth will provide little solace for equities or commodities

if it pushes bond yields higher," write SocGen analysts.

They add that the sell-off in bonds has been more aggressive than they had anticipated. The

past week was "a tough one for asset markets" and this one could be more of the same.

(Helen Reid)

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"EXTREMELY WELCOME NEWS FOR ACTIVE" (0638 GMT)

Bernstein's global quantitative analysis team finds a pick-up in performance for active

managers and signs they could continue to do well this year, a godsend after years of

disappointing returns for the industry.

European portfolio managers and global quantitative managers beat benchmarks by 3.3% and

1.9% on average in 2017, Bernstein finds, and this strong performance has continued into 2018.

Stock and factor correlations at multiyear lows create optimal conditions for active

management and stock picking. "Even (Taiwan OTC: 6436.TWO - news) if are unlikely to go lower from here, the

current levels suggest a rich opportunity set for stock pickers for the next 12 months," write

Alla Harmsworth and team.

Intra-sector correlations are at 20-year lows on both sides of the Atlantic (Shanghai: 600558.SS - news) , and valuation

spreads are wider than usual across the whole market and within sectors, they note.

"This suggests a heightened potential ability to identify idiosyncratic 'winners' even

amongst peers within narrow market segments," says Harmsworth.

It'll be interesting to see whether this low correlation environment continues even if the

stocks rally starts to peter out.

(Helen Reid)

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MORNING CALL: SELL-OFF TO SPREAD TO EUROPE (0618 GMT)

Good morning and welcome to Live Markets.

European stocks are in for a turbulent start to the week after a sharp sell-off in Asian

shares overnight, with fears of resurgent inflation taking their toll on markets near record

high levels.

Asian shares fell the most in more than a year, tracking a much weaker Wall Street session

after Friday's U.S. payrolls report showed wages growing at their fastest pace in more than 8

years.

Spreadbetters call the DAX 153 points lower at 12,632.4, the CAC 40 down 64 points at

5,300.7, and the FTSE down 79 points at 7,364.

(Helen Reid)

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