LIVE MARKETS-On our radar: virus-hit Italy, travel and luxury stocks

* European futures down 2% on virus pandemic worries

* Italy battles 'explosion' of coronavirus cases

* Gold surges as investors seek safety
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters. You can share your thoughts with Thyagaraju Adinarayan
(thyagaraju.adinarayan@tr.com), Joice Alves (joice.alves@tr.com), Julien Ponthus
(julien.ponthus@tr.com) in London and Danilo Masoni (danilo.masoni@tr.com) in Milan.

ON OUR RADAR: VIRUS-HIT ITALY, TRAVEL AND LUXURY STOCKS (0750 GMT)

Italian stocks are expected to lead a sell-off in European shares at the open after the
country took extraordinary measures to contain a sharp rise in coronavirus infections which
could have a big impact on business activity in Europe's No. 4 economy.

Bank of Italy governor Ignazio Visco reportedly said that virus damage could wipe off more
than 0.2% from economic growth.

Futures on Italy's main stock benchmark slid 4% to their lowest in nearly 3 weeks,
while other euro zone futures fell 2% and FTSE futures were down 1.3%.

Italy reported more than 150 coronavirus cases, leading authorities to seal off the worst
affected towns in the wealthy regions of Lombardy and Veneto, shut schools, museums and cinemas
and call off the Venice Carnival.

Worries over a global pandemic are set to hit travel, luxury and chip stocks sharply. Shares
in these sectors could fall around 2-3% at the open, say traders. RCB has estimated a 3-4%
earnings hit from the virus for Paris and Frankfurt airport operators.

In the UK, AB Foods warned there was a risk of supply shortages on some lines if
delays in factory production in China are prolonged due to coronavirus

In banks, UniCredit confirmed its CEO Mustier will remain at the bank following
reports that he was being considered for the top job at rival HBSC. Meanwhile the FT
reported that Barclays is gearing up to start the search for a new top boss to replace
CEO Staley.

Other stock movers: Bunzl posts higher profit as acquisitions pay off; UK's Countrywide in
talks with LSL Property for possible all-share merger; Italy positive on EU talks over Monte dei
Paschi clean-up plan

(Danilo Masoni)

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EUROPE SEEN DOWN SHARPLY ON VIRUS PANDEMIC FEARS (0640 GMT)

European shares are expected to open sharply lower this morning as worries over the economic
damage from coronavirus grew following sharp rises in infections outside China.

Italy, along with South Korea and Iran saw a sharp rise in infections, fuelling worries that
the outbreak will grow into a pandemic.

"The new fears are centred around South Korea and Northern Italy where virus outbreaks have
led to travel restrictions," says Chris Bailey, European Strategist at Raymond James.

In Italy, where over 150 cases were reported, authorities sealed off the worst affected
towns in the wealthy regions of Lombardy and Veneto ordered schools to close for at least a
week, shut museums and cinemas and called off the Venice Carnival.

Spreadbetters at IG expect London's FTSE to open 92 points lower at 7,312, Frankfurt's DAX
to open 257 points lower at 13,322, and Paris' CAC to open 106 points lower at 5,923.

EuroSTOXX 50 futures are down 2.1%.

Over in Asia, shares also fell sharply as investors sought refuge in safe haven assets such
as gold.

(Danilo Masoni)

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(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)