UPDATE 2-Vaccine hopes, upbeat earnings power European shares


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    * Upbeat earnings from Daimler, Volvo lift auto stocks
    * Surging Vuitton sales boost LVMH despite pandemic woes
    * Johnson says prepare for no-deal Brexit, cancels trade
    * STOXX 600 snaps two-week winning streak as lockdown fears

 (Updates to close)
    By Sagarika Jaisinghani
    Oct 16 (Reuters) - European shares bounced on Friday on
hopes that a vaccine for the novel coronavirus could be
available in the United States before the end of the year, with
a clutch of upbeat quarterly earnings also lifting sentiment
after a torrid week.
    Pfizer Inc  PFE.N  said it could file for U.S. authorisation
of the COVID-19 vaccine it is developing with German partner
BioNTech  22UAy.F  as early as November.  urn:newsml:reuters.com:*:nL4N2H72L3
    The news powered global stock markets and helped lift the
pan-European STOXX 600  .STOXX  by 1.3% in its best session in
nearly three weeks.  MKTS/GLOB 
    The benchmark stock index nevertheless ended Friday with its
first weekly decline in three as a resurgence in coronavirus
cases across Europe stoked fears about more sweeping lockdowns.
London and Paris, Europe's two richest cities, are again living
under the shadow of state-imposed restrictions.
    "This raises the very real fear that what is a stop-gap
measure actually turns out to be something slightly longer term,
which could see the collapse of hundreds of businesses," said
Michael Hewson, market analyst at CMC Markets UK.
    The new restrictions could also stifle business activity,
derail a nascent economic rebound and further pressure European
stock markets, which have lagged a recovery in their U.S. peers.
While the S&P 500  .SPX  has gained about 8% this year, the
European STOXX 600 is still down nearly 12%.  urn:newsml:reuters.com:*:nL8N2H72VW
    Adding to investor uncertainty, British Prime Minister Boris
Johnson said on Friday it was time to prepare for a no-trade
deal Brexit unless the European Union fundamentally changed
course in trade talks.  urn:newsml:reuters.com:*:nL8N2H710T
    London's FTSE 100  .FTSE  still rose 1.5% as analysts said
the majority of market participants expected a deal to be
    In company news, Thyssenkrupp  TKAG.DE  surged 10.8% as
Liberty Steel, founded by commodities tycoon Sanjeev Gupta, said
it had made a non-binding offer for the company's steel unit.
    LVMH  LVMH.PA  jumped 7.3% as recovering sales of Louis
Vuitton handbags helped it contain the fallout from the
coronavirus crisis in the third quarter.  urn:newsml:reuters.com:*:nL8N2H65R9
    Shares of other luxury goods makers including Moncler
 MONC.MI  and Burberry  BRBY.L  rose more than 3%.
    Telecoms  .SXKP  and real estate  .SX86P  were the only two
European sectors to end lower on the day.
    German shares  .GDAXI  rose 1.6%, clawing back more than
half their losses from the previous session, with Daimler
 DAIGn.DE  surging 5.5% after the luxury carmaker posted
forecast-beating third-quarter results.  urn:newsml:reuters.com:*:nL8N2H66R6
    A 3.3% rise for Volvo after stronger-than-expected results
also helped power the European autos index  .SXAP  to its best
session since Sept. 28.  urn:newsml:reuters.com:*:nL8N2H70NX

 (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Arun Koyyur and Catherine Evans)
 ((Sagarika.Jaisinghani@thomsonreuters.com; within U.S. +1 646
223 8780; outside U.S. +91 80 6182 2256;))

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