Nov 24 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com EURO/DOLLAR: WILL IT BE LIKE IN 2014? (1201 GMT) As markets expect U.S rates to rise faster than their euro zone peers, the dollar is rising quickly against the euro. But now, some investors wonder about whether it will be a repeat of 2014-15, when the euro-dollar fell by 25%. The collapse in the euro zone currency took place more than six months after the so-called taper tantrum; when traders dumped Treasuries ahead of the Fed reducing bond purchases. Deutsche Bank analysts see the euro/dollar to break 1.10 and “how far and for how long it travels below will not depend on U.S. ten-year yields but the front-end,” they say. According to Commerzbank analysts, the kind of dollar appreciation that took place in 2014, “is certainly not completely impossible.” One could argue that the dollar will benefit less this time, though because it was disappointed by the Fed that hiked interest rates less aggressively than expected, they say in a research note. But, “we are at a completely different starting point this time, in particular with a view to inflation which has overshot the Fed’s target,” they add. “The longer U.S. inflation remains at these high levels, the more the market is likely to price in an aggressive approach on the part of the Fed, thus pushing up the dollar,” they argue. The chart shows the euro/dollar rate and U.S. 10-year yields . EURUSD (Stefano Rebaudo) ***** EQUITIES: REASONS TO STAY BULLISH IN 2022 (1033 GMT) Being bullish on equities with main stock indexes at their current levels might be a bit daring, but it all depends on the economic outlook and on central banks" next moves. According to Mark Haefele, Chief Investment Officer, UBS Global Wealth Management, “the Federal Reserve will not be compelled to overtighten financial conditions and will continue to balance developments in the labor market with their price stability objective.” “As pandemic disruptions fade, we expect year-over-year rates of U.S. inflation to fall from 6.5% at the end of 2021 to 1.8% by the end of 2022,” he says in a research note. “If this is the case, it will make it easier for the Fed to justify remaining on hold until 2023,” he adds. UBS expects global earnings growth of 10% in 2022, with cyclicals posting the highest earnings growth rates. It likes euro zone and Japanese equity markets, global financials, U.S. mid-caps, commodities and energy stocks. ERP ERP (Stefano Rebaudo) ***** STOXX BOUNCES BACK: OIL UP, TRAVEL DOWN (0912 GMT) Some risk appetite has returned to markets, sending the STOXX 600 (.STOXX) equity benchmark rising a decent 0.5% in opening deals from three-week lows. Oil and gas (.SXEP) is the leading sectoral gainers, up 1.3% after a U.S. led release of strategic reserves fell short of expectations, triggering a bounce in crude prices. Other cyclical sectors were also in demand with banks (.SX7P) and miners (.SXPP) gaining around 1% or more, while worries over new restrictions to fight a fourth wave of virus infections sent travel stocks (.SXTP) to February lows. Angst over a currency crisis in Turkey appeared to loosen its grip over BBVA (BBVA.MC). Shares in the Spanish lender edged up from 4-month, having fallen six times in the previous seven sessions. Telecom Italia (TLIT.MI) climbed further, up 8% in heavy volumes, on media speculation U.S. fund KKR is looking into raising its proposed bid to win over reticent shareholders such as Vivendi (VIV.PA). (Danilo Masoni) ***** BRACE FOR IT (0757 GMT) If you were hoping that the day before a big U.S. public holiday would bring a semblance of calm, think again. First, before Thursday"s Thanksgiving holiday comes a slew of U.S. data -- weekly initial jobless claims, the second Q3 GDP print, personal income and personal spending numbers for October, new home sales, and preliminary readings for October durable goods orders. The PCE index, a key inflation indicator, will be in focus given the recent surge in inflation to three-decade highs. And not to forget minutes from the Fed"s last meeting - the one where they announced tapering - are also on the calendar. In Europe, Germany"s closely watched Ifo business indicator may better illustrate the impact of resurgent COVID caseloads than Tuesday"s upbeat PMI numbers. All of this comes against the context of increasingly edgy world markets as investors position for higher inflation and interest rates. Equity markets were particularly unnerved by a rise in real or inflation-adjusted yields in major economies. German 10-year inflation linked bond yields jumped nine basis points to 3-week highs on Tuesday, surpassing a 7 basis-point rise in nominal borrowing costs. That came after hawkish comments on inflation by two ECB policymakers. New Zealand"s central bank meanwhile hiked interest rates for the second straight month on Wednesday to keep surging consumer prices in check. read more Still, European stock futures are higher this morning. On Wall Street, where higher Treasury yields sent the tech-heavy Nasdaq down for two straight days, futures are flatlining. And don"t forget Turkey where the lira is headed back towards record lows hit during Tuesday"s 15% crash. With President Tayyip Erdogan defending recent rate cuts, the lira , is trading around 13 per dollar, down 22% since the beginning of last week. Contagion appears limited, but investors are watching closely. Lira underperforms EM peers Lira underperforms EM peers Key developments that should provide more direction to markets on Wednesday: - Major Toshiba shareholder objects to break-up, urges board to solicit offers read more - Japan"s factory activity grows at fastest pace in nearly four years read more - ECB speakers: ECB board member Isabel Schnabel - Treasury 20-year bond auction (Dhara Ranasinghe) ***** EUROPE: TENTATIVE BOUNCE (0743 GMT) European shares look set for a tentative bounce from three week lows at the open today after a late session recovery on Wall Street that saw the S&P 500 close with a marginal gain. Rising U.S. yields and volatile oil prices however made for a jittery session in Asia with a MSCI gauge of Asia-Pacific shares outside Japan easing around 0.1%. read more Futures on the euro STOXX 50 and DAX indices were just above parity at the time of writing after earlier rising around 0.3%, although FTSE contracts were a touch lighter. In the previous session, the pan-regional STOXX 600 (.STOXX) index suffered its biggest one-day drop in around two months, as a resurgence in COVID-19 cases raised fears of new restrictions. (Danilo Masoni) *****