UPDATE 2-European stocks boosted by vaccine hopes, EU rescue fund optimism

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* EU big players see recovery deal coming soon
* Oxford vaccine shows promise in first human trial
* Wealth manager Julius Baer drops after decline in AUM
* Italy's UBI surges after Intesa raises bid by 18%

(Recasts lede, updates prices)
By Sruthi Shankar and Shreyashi Sanyal
July 20 (Reuters) - European shares turned higher on Monday,
helped by encouraging data from an array of coronavirus vaccine
candidates and after EU leaders sketched a framework agreement
on a recovery fund to stimulate the pandemic-stricken euro zone
economies.
An index of eurozone shares .STOXXE rose 0.9% reversing
all of its opening losses, with the euro jumping to a four-month
high. FRX/
An experimental coronavirus vaccine being developed by
AstraZeneca AZN.L and Oxford university was safe and produced
an immune response in its first human trial, while U.S.
drugmaker Pfizer PFE.N and German biotech firm BioNTech
BNTX.O also provided additional promising data. The pan-European equities index .STOXX also reversed
course to rise 0.8% after German Chancellor Angela Merkel said
leaders now had a new basis for a deal on a 750 billion euro
($858 billion) recovery fund and the bloc's next 2021-2027
common budget, worth around 1.1 trillion euros. Defensive healthcare index .SXDP rose the most in Europe,
up 1.2% as signs emerged that leaders of northern European Union
countries were willing to compromise on the recovery plan as
talks in Brussels extended to a fourth day. Euro zone markets have rallied since an initial
Franco-German proposal was announced in mid-May, but the plan
has met with resistance from the "frugal" states led by the
Netherlands over the size of grants doled out to the
worst-affected states.
"The fact that EU leaders are willing to come back for the
fourth day is to all appearances a good sign," Stephen Innes
from Axicorp wrote in a client note.
"It signals a will power get something through, rather than
resorting to another summit over the next couple of weeks."
European markets had opened lower, with travel & leisure
.SXTP falling 0.9%, the biggest sectoral decliner in Europe,
while oil & gas companies .SXEP and miners .SXPP dropped
0.3% each.
Chris Bailey, a European strategist at Rayond James said,
"People - especially non-European investors - have been
disappointed so much by Europe that they need confirmation."
"Slower money will wait for confirmation to buy stocks."
In individual stock moves, Swiss wealth manager Julius Baer
Gruppe AG BAER.S declined 3% as it reported a 6% drop in
assets under management from end-2019 in the six months through
June. Dutch health technology company Philips NV PHG.AS gained
5.3% as it expected to return to growth in the second half of
the year. Italy's UBI Banca SpA UBI.MI surged 14% after Intesa
Sanpaolo SpA ISP.MI raised its bid for the rival by 18%.