LIVE MARKETS-What's on our radar before the open: Barclays & macro

* European shares seen down slightly

* FT says Barclays (LSE: BARC.L - news) explores potential mergers

* Eyes on PMIs, UK inflation, FOMC minutes

May 23 (Reuters) - 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: danilo.masoni.thomsonreuters.com@reuters.net

WHAT'S ON OUR RADAR BEFORE THE OPEN: BARCLAYS (Swiss: BARC.SW - news) & MACRO (0644 GMT)

European shares are expected to pull back from recent highs with futures on main country

indexes down 0.3-0.6 percent as optimism over U.S.-China trade talks cools. The session is

likely to be dominated by the release of macroeconomic data with the global Purchasing Managers

Indices squarely in focus, along with inflation data in the UK and the FOMC minutes after the

market close.

On the corporate front, the UK banking sector will take centre stage after the Financial

Times reported that Barclays is exploring a potential merger with rival banks, including

Standard Chartered (BSE: 580001.BO - news) . While Standard is seen up as much as 5 percent in pre-market, there are

mixed calls on Barclays shares, between a fall of 2 percent and a rise of 3 percent. Sources

later said Barclays has no plans for a tie-up with rivals.

Elsewhere, Marks and Spencer shares could see a volatile session after its pretax profit

beat expectations, although traders said 4Q LFL clothing-and-home unit sales fell short of

expectations.

(Danilo Masoni)

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EUROPEAN STOCK FUTURES OPEN DOWN 0.3-0.5 PCT (0615 GMT)

European shares are set to pull back from 3-1/2 month highs hit on Tuesday with futures

pointing to losses of around 0.3-0.5 percent, tracking losses in Asia, after U.S. President

Donald Trump tempered optimism over progress made so far in trade talks.

Here's your snapshot:

(Danilo Masoni)

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EARLY MORNING HEADLINES ROUNDUP (0553 GMT)

Barclays explores potential mergers with rivals - FT

Rio Tinto (Hanover: CRA1.HA - news) in talks for Grasberg copper stake sale

Swiss bank Julius Baer (LSE: 0QO6.L - news) breaks 400 bln Sfr AuM mark

BT signs four-year extension to football TV production deal - The Telegraph

India's Vedanta hits over 10-mth low as protests against copper plant turn violent

Norway's wealth fund voted in favour of Shell CEO pay, against climate targets

German solar battery maker sonnen secures Shell (LSE: RDSB.L - news) cash to expand

"Referendum" result due on France's big railway shake-up

Global M&A hits record $2 trillion in year

Shell's oil spill dispute with Nigeria's Bodo villagers back in UK court

(Danilo Masoni)

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MORNING CALL: EUROPEAN shares seen slightly lower (0522 GMT)

European shares are set for a slightly negative start today, with CMC Markets (LSE: CMCX.L - news) expecting

London's FTSE to open 19 points lower at 7,858. Frankfurt's DAX is expected to open 20 points

lower at 13,150, while Paris' CAC is seen down 12 points lower at 5,628.

Over in Asia, shares were mostly weak with investors cautious after U.S. President Donald

Trump tempered optimism over progress made so far in trade talks between the world's two largest

economic powers.

(Danilo Masoni)

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