LONDON- Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net

U.S. FUTURES SUGGEST STOCKS POISED TO SLIDE (0903 AM EDT/1303 GMT)

U.S. stock futures are under pressure amid increased trade tensions with Turkey, and global equity market weakness.

Although the Turkish lira has come off its lows against the dollar, markets are not reacting well to news that Turkey had doubled tariffs on some U.S. imports including cars, alcohol and tobacco.

With major European equity indices down about 1 percent, and a more than 2 percent decline in the Shanghai Composite overnight, U.S. Futures are feeling the heat.

Indeed, CME E-Mini S&P 500 Futures suggest the S&P 500 index is poised to open about 15 points lower. In percentage terms, the Nasdaq 100 is being hit the hardest. This with 9 of 10 NYSE Fang+TM index stocks trading down in premarket. Russell 2000 futures (small caps) are holding up the best ahead of the bell.

Early bid/asked indications suggest the iShares MSCI Turkey ETF may open up about 1 percent.

In terms of data, retail sales month-over-month came in better-than-expected at 0.5 percent vs a +0.1 percent estimate. Ex-autos was also ahead of estimates at 0.6 percent vs. +0.3 percent expected. NY Fed Manufacturing hit 25.60 vs. an estimate of +20.

Dow component/networking bellwether Cisco Systems due to report its quarterly numbers after the close.

Here is your premarket snapshot:

(Helen Reid)

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MIDDAY SNAPSHOT: U.S.-TURKEY TARIFF SPAT WEIGHS ON AUTOS, MINERS (1202 GMT)

Autos stocks are among the worst performers today, helping weigh the DAX down to a 6-week low after Turkey doubled tariffs on some U.S. imports including alcohol, cars and tobacco.

The news has taken the autos sector back down to near its lowest level hit when trade war fears gripped markets at the start of July (see below). Volkswagen, Daimler and BMW are falling 1.5 to 2.2 percent.

Miners .SXPP too are falling sharply, down 3.1 percent and at an 8-month low as renewed anxiety over trade piles pressure on to a sector already dented by falling copper prices.

"The imposition of punitive tariffs on a raft of U.S. imports is hardly indicative of the Turkish authorities being ready to embark on some sensible monetary and fiscal measures to combat the crisis," quips Neil Wilson of markets.com.

All European sectors are in the red, with the best-performing media, real estate, and food & beverage stocks.

"Until there is clarity markets will be volatile, and given we have the earnings season almost over we could see further profit-taking in the short term," said a trader.

 

(Helen Reid)

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TURKEY RISK "MANAGEABLE" (1045 GMT)

Deutsche Bank's European equity strategy team has taken a look at the possible fallout from the Turkish financial crisis and concluded that the risk to Euro area growth is "manageable".

This is because Turkey accounts for only around 3 percent of total Euro area exports, equating to around 0.6 percent of GDP.

And even the 110 billion euro lending exposure of European banks to Turkey should be ok, as DB points out it makes up only 1 percent of their overall loan book.

"Unless the situation turns into a broader EM crisis, the risk to Euro area growth from the situation in Turkey should be limited," write DB's strategists.

See below for DB's screen of European stocks most exposed to Turkey:

 

(Kit Rees)

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TRAVEL AND LEISURE: ALL GOOD THINGS MUST COME TO AN END (1020 GMT)

Make your peace with it: summer and holiday time will soon be gone, and with it some love for travel and leisure stocks.

"Medium-term expectations for shares in the travel and leisure sector are falling significantly," Sentix managing director Manfred Hübner said commenting an investors survey.

"At the end of the holiday season, the sector is thus losing focus and is likely to perform below average in view of the willingness to reduce its position in the coming weeks," he added, noting that "the current crisis in the emerging markets and persistently high oil prices are side effects that support such a scenario".

Here's the sector versus the STOXX 600 since the beginning of the year.

There's quite a positive mood on airlines however this morning:

This might have to do with a positive note from UBS:

(Julien Ponthus)

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MORNING SNAPSHOT: EUROPEAN STOCKS HOVER AS EM FEARS RECEDE (0907 GMT)

European stocks are flat in early deals with the DAX up 0.2 percent and the FTSE down 0.1 percent as the Turkish lira extends its recovery, trading at around 6.2 to the dollar after a fresh move by banking watchdog BDDK to shore up the currency. 

Basic resources are the big fallers today with the sector .SXPP down 1.2 percent as copper prices drop to their lowest in more than a year on a stronger dollar and the union for Chile's Escondida saying it will avert its planned strike. 

In earnings moves, hearing aid maker William Demant stands out with an 8 percent drop after it lifted its guidance on earnings less than the market was hoping. 

Wind turbine maker Vestas Wind VWS.CO is up 3.7 percent after it reported forecast-beating orders and profit.

Atlantia ATL.MI shares are under pressure for a second day, dropping 5.4 percent after the death toll of the Genoa motorway bridge collapse rose to 37 and Italy's transport minister said top management at Autostrade - a unit of Atlantia - must resign. 

(Helen Reid)

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ON OUR RADAR AT THE OPEN (0650 GMT)

Europe seems set to open in positive territory and march in the footsteps of Wall Street’s positive close rather than in Asia’s gloomy session.

The lira crisis seems to be taking a temporary breather, at least in terms of contagion to European stocks.

It’s also a holiday in parts of Europe so trading isn’t expected in wild volumes.

In terms of individual stocks, there isn’t a huge amount in terms of earnings as the season nears its end.

Balfour Beatty reported a 69 percent jump in underlying operating profit as its measures to cut costs and boost margins paid off and Admiral posted a 9 percent rise in first-half pre-tax profit, helped by demand for its insurance products.

RBS is front page news again after the U.S. Justice Department confirmed the bank would pay $4.9 billion to settle U.S. claims that it misled investors on residential MBS between 2005 and 2008. This announcement confirms the May 10 deal and RBS repeated it would pay a dividend for the first time since the financial crisis.

Still in the UK, attention will also be on inflation data after disappointing wage growth yesterday.

How unions will react to press reports that Air France-KLM's board could appoint Air Canada's COO as its new boss could have a big impact on the airline.

Talking about the industry, French airport operator ADP, which the French state seeks to privatise, reported a 3.7 percent year-on-year rise in July traffic with 10.4 million passengers having travelled through Paris-Charles de Gaulle and Paris-Orly.

Another possible mover are Deutsche Telekom and United Internet which are in talks on cooperating to build out Germany's fibre optic network, potentially defusing a standoff between the two firms ahead of 5G mobile licence auctions next year.

(Julien Ponthus)

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MORNING CALL: FUTURES CAUTIOUSLY UP (0606 GMT)

Futures have opened and they are rising as expected but very cautiously:

(Julien Ponthus)

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MORNING CALL: EUROPEAN SHARES SEEN EDGING UP (0523 GMT)

Financial spreadbetters expect London's FTSE and Frankfurt's DAX to open both 17 points higher. While Wall Street's three main indexes closed in positive territory, things are less rosy in Asia where stocks are retreating.

The lira, which plummeted to a record low of 7.24 to the dollar at the week's start, rattling global markets, is currently trading at 6.50.

Here's what the action looked like these past few days on the front of the Turkish currency crisis :

(Julien Ponthus)

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