* Daimler falls after profit warning, drags carmakers lower
* London stocks eke out small gains
* MorphoSys jumps on positive blood cancer drug data (Updates to close)
By Susan Mathew and Medha Singh
June 24 (Reuters) - Weak German economic data and a profit warning from Daimler weakened European stock markets on Monday as investors reined in any bets on a fourth week of gains before G20 meetings that may see more trade talks between the U.S. and Chinese presidents.
London's FTSE .FTSE rose 0.1% thanks to gains in defensive plays including healthcare stocks. Traders also pointed to the weakness of the pound, which tends to boost the index's internationally-focused firms.
The main European index .STOXX has shown signs of flagging in the past week after recouping almost all of its losses from a sharp sell-off in May, helped by expectations of more monetary stimulus globally.
Corporate newsflow continues to point to a slowdown in growth and Mercedes-Benz maker Daimler DAIGn.DE dropped 3.8% after it cut its 2019 earnings outlook and lifted provisions for issues related to its diesel vehicles by hundreds of millions of euros. endless array of so-called one-time effects (on Daimler) raises questions regarding process, management information systems and ultimately accountability of management," Evercore ISI analyst Arndt Ellinghorst said in a research note.
That, allied to data showing German business morale fell to its lowest level since November 2014 in June, saw the DAX post its worst session in a week. President Donald Trump and his Chinese counterpart Xi Jinping are expected to discuss trade on the sidelines of the summit in Japan, after talks to reach a broad deal broke down last month with the U.S. accusing China of reneging on previous commitments. outcome from the Trump-Xi meeting promises significant implications for investors who are finalizing their outlooks for the second half of 2019," wrote Han Tan, Market Analyst at FXTM in a note.
"While the ... meeting is a meaningful step towards de-escalating tensions, markets could also be left disappointed."
The biggest gainer on Europe's main index was MorphoSys MORG.DE , up almost 6% after it presented data showing its blood cancer drug met its main goal in a study.
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