TATE.L - Tate & Lyle plc

UPDATE 2-Johnson Matthey battles lower profit at its biggest unit

Johnson Matthey on Wednesday lowered the profit outlook for its largest unit that makes pollution filters for cars and trucks and announced the departure of the unit's head, sending its shares down more than 3%. Shares of the FTSE 100 company was the biggest loser on London's blue-chip index. The moves follow scrutiny of Johnson Matthey's catalytic filters for trucks, which have been linked to emission issues at truckmakers Volvo and Cummins.

LIVE MARKETS-Closing snapshot: Lagarde effect

* STOXX 600 end at highest in nearly a year, up 0.85% * FTSE 100 boosted by weak pound * EU leaders choose France's Lagarde for ECB * Italy avoids EU sanction threat, bank stocks rally * S&P 500 hits fresh record high July 3 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://thyagaraju.adinarayan.thomsonreuters.com@reuters.net CLOSING SNAPSHOT: LAGARDE EFFECT (1627 GMT) Bets that ECB chief nominee Christine Lagarde will strengthen the big global dovish camp boosted euro zone stocks with defensive sectors from healthcare food and beverage leading the broad-based rally. Gains in Europe and a FTSE 100 supported by a weaker sterling amid continued Brexit worries drove the pan-European STOXX 600 to its highest level in nearly one year.

LIVE MARKETS-Italy: plenty to catch up

LIVE MARKETS-EBA: Another thing to worry about for bank stocks?

* STOXX 600 hits highest in nearly a year, up 0.8% * FTSE 100 driven by JD Sports, "sin" stocks * STOXX food & beverage index hits fresh record high * EU leaders choose France's Lagarde for ECB * S&P 500 futures hit fresh record high July 3 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. As it finalises recommendations for the EU on meeting requirements for the Basel III accord, the banking watchdog said major EU banks face a collective shortfall of 135 billion euros to meet global capital requirements by 2027. "EBA recommendations - a capital negative, but politicians unlikely to follow through, in our view," says Credit Suisse analyst Jan Wolter.

LIVE MARKETS-Investors flock to gold

LIVE MARKETS-Auto suppliers: "Entering the warning season..."

* STOXX 600 hits highest in nearly a year, up 0.8% * FTSE 100 driven by JD Sports, "sin" stocks * STOXX food & beverage index hits fresh record high * EU leaders choose France's Lagarde for ECB July 3 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Here are their main takeaways: * NO VISIBILITY: "The global car sales/production trend is dependent on China, as Western Europe might decline and the U.S. could continue to roll over, be it with a richer light-truck mix. The comps are a lot easier in China and Europe, but will this be enough?" * WARNING SEASON: "H1 has probably been tougher than feared and market participants do not seem to have any visibility on H2: most might officially capitulate on 2019 outlook (Faurecia, Schaeffler) or deplete guidance either in Q2-19/H1-19 (Conti, POM) or in Q3 (Valeo, Stabilus), still assuming from a Summer viewpoint that they can still deliver on demanding targets." * CASH FLOW OR DIVIDEND AT RISK: "Most players should announce (further) cost-cutting should lacklustre production extend into Q3-19 (POM/Valeo/Leoni/Hella) to try and protect cash.

LIVE MARKETS-Doves fly on Lagarde ECB nomination

* STOXX 600 hits highest since May 1 * FTSE 100 driven by JD Sports, "sin" stocks * STOXX food & beverage index hits fresh record high July 3 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net DOVES FLY ON LAGARDE ECB NOMINATION (0821 GMT) The rally in Europe this morning is decidedly defensive with food & beverage, utilities, healthcare and real estate sectors leading the charge. High dividend stocks including AB InBev, British American Tobacco, Diageo, Unilever, and Nestle are among the biggest boosts to the STOXX as investors search for yield, reacting to what's likely to be a lower-for-longer interest rate environment.

UPDATE 2-FTSE 100 hits 10-month high as weak pound spurs rate cut bets

Britain's main index rallied to a 10-month high on Wednesday as sterling fell after weak economic data, which aided exporter firms, reinforced bets that the Bank of England would cut interest rates and drove investors to high-dividend stocks. The FTSE 100 rose 0.7%, scaling its highest level since Aug. 29, boosted by shares of companies that book a major chunk of their revenue overseas. The FTSE 250 added 0.6%.

LIVE MARKETS-Opening snapshot: Gains in defensives on dovish ECB pick

* STOXX 600 up 0.3%, driven by defensive sectors * FTSE 100 driven by JD Sports, "sin" stocks * STOXX food & beverage index hits fresh record high July 3 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net OPENING SNAPSHOT: GAINS IN DEFENSIVES ON DOVISH ECB PICK (0729 GMT) European stocks have opened 0.4% higher, led by strong gains in defensive sectors such as utilities, food & beverage (which hit a fresh all-time high) and real estate. The pan-European STOXX 600 hit a 2-month high, wiping off losses from the trade war escalation in May. Meanwhile the euro zone's banking index is sliding 0.6% after Christine Lagarde was named as the next ECB president, a pick interpreted as dovish and meaning lenders will have to wait even longer for a rate rise.

Tate & Lyle slips after forecasts only limited earnings growth

It expects progress to be limited by lower profit from sucralose products and market challenges in primary products, which consist of high-volume sweeteners, industrial starches and fermentation products. Shares in the British food ingredients maker were 4.2% lower at 758.8 pence at 1045 GMT, making then one the biggest percentage losers on London's midcap index. The company, which traces its roots back to a sugar business in 1859, said it had felt the effects of one-off costs from both the sale of its oats ingredients unit and a simplification drive.