LIVE MARKETS-Defensive buying limits the damage

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DEFENSIVE BUYING LIMITS THE DAMAGE

It could have been worse. European shares are down something more than 1%, better than earlier indications from futures markets, which pointed to declines of more than 2%.

Trump's tariffs overall look worse than expected, but safe-haven demand and bets of more rate cuts that are pushing bond yields sharply lower are giving a nice boost to bond proxies.

Real estate .SX86P is up 2.5% and utilities .SX6P, which are also less exposed to economic downturns, rise 1.7%.

Drinks stocks like Diageo DGE.L are on the up, with the levy on sprits looking less bad than feared. Drugmakers are outperforming too as pharma was excluded from the tariffs.

That's helping the region wide STOXX 600 .STOXX limit the damage to a fall of 1.3% by 0823 GMT after hitting its lowest level in more than 2 months. The index is still up 4.4% YTD.

Utility-heavy Lisbon .PSI is even managing a small gain of 0.5%. Stockholm OMXS30 is leading the way lower, down 2.5%

Clearly there are big tariff losers too, among sectors, namely luxury and sportswear. Banks .SX7P are getting hammered by growth concerns and rate cut bets following their stellar performance so far this year.

China-exposed names from miners to lenders such as StanChart STAN.L are also feeling pain. A gauge of volatility .V2TX is up but below March's peak.

Here is your opening snapshot:

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

EUROPE BEFORE THE BELL: HEAVY SELLOFF COMING CLICK HERE

SEEMS INVESTORS REALLY DON'T LIKE TARIFFS CLICK HERE