LIVE MARKETS-The worst of both worlds: pound down-FTSE down; euro down-STOXX down

* European shares lower

* M&S shares jump after FY results

* Pound falls on weak UK inflation

* French, German PMIs disappoint

* Eyes on 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

THE WORST OF BOTH WORLDS: POUND DOWN-FTSE DOWN; EURO DOWN-STOXX DOWN (1035 GMT)

There's usually good news and bad news: a falling pound or euro on the back of weak macro

data typically gives a boost to the FTSE 100 or Euro zone shares.

Not today.

"Lower than expected inflation in Britain and weak PMIs in Germany and France are dragging

down the currencies but provided no support to the stock market," Joshua Mahony, Market Analyst

at IG (Frankfurt: A0EARV - news) notes.

At 1030 GMT, Euro zone shares are down 1.2 percent with the euro losing about 0.5

percent. The FTSE is falling about 0.7 percent while sterling retreats 0.6 percent, a

2018 low as the Bank of England seems less likely to raise rates this year.

As Rabobank analysts argue, the same goes with the ECB and weak economic data from the Euro

zone's two biggest economies.

"This, in turn, strengthens our view that the first rate hike is not to be expected before

September 2019..." they write. Money markets are now pricing in less than a 60 percent chance of

a 10 basis point ECB rate hike by June 2019.

Adding more gloom to the bigger picture, French unemployment rose slightly in Q1,

confounding economists' expectations for a decline and suggesting President Emmanuel Macron's

policies to boost jobs and growth are struggling to find traction.

For ING, today's data is clearly another nail in the #Euroboom narrative.

"Contemplating the Eurozone’s growth perspectives we, unfortunately, might have to refer to

the famous Looney Tunes catchphrase "That's all folks!".

Good luck to these two:

(Julien Ponthus)

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OPENING SNAPSHOT: COMMODITIES DRAG DOWN EUROPEAN SHARES (0714 GMT)

European stocks are taking a breather as they open lower, with losses among miners and oil

stocks the biggest weight.

Financials might be in negative territory too but Barclays (LSE: BARC.L - news) shares are modestly higher after

the FT report it is looking at possible mergers with other banks, while Standard Chartered (BSE: 580001.BO - news) ,

which was mentioned in the report, is up 2 percent.

UK stocks are stealing the show today with retailer Marks and Spencer up 5.7 percent after

its full-year results. Before the market opened, traders highlighted that M&S had maintained

both its guidance and dividend.

Shares (Berlin: DI6.BE - news) in Britvic (Stuttgart: A0HMX9 - news) are also among the biggest gainers, up more than 5 percent, after the soft

drink company gave a half-year update.

Here's your opening snapshot:

(Kit Rees)

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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. 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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