UPDATE 2-European shares bounce back, focus shifts to ECB meeting

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* AstraZeneca up on report vaccines trial may resume next
week
* ECB expected to hold rates; focus remains on inflation
* Travel and leisure underperform among sector indexes
* Expectations for STOXX 600 earnings worsen for Q3

(Updates prices throughout, adds comments)
By Shreyashi Sanyal
Sept 9 (Reuters) - European shares bounced back on
Wednesday, on the eve of the European Central Bank's policy
meeting, as AstraZeneca reversed declines after a report that it
may resume its COVID-19 vaccine trial next week.
AstraZeneca Plc AZN.L had to pause global trials of its
experimental vaccine after an unexplained illness in a
participant. But its shares rebounded from small declines
earlier in the session to inch 0.5% higher after the Financial
Times report.
"Given how brash the markets have been around any vaccine
updates, this understanding that delays in the process aren't
necessarily cause for concern is a surprising acknowledgement of
nuance," said Connor Campbell, financial analyst at spread
better Spreadex.
The pan-European STOXX 600 index .STOXX rose 1.6%, with
telecoms .SXKP , insurers .SXIP and technology stocks .SX8P
leading sectoral advances.
Travel and leisure stocks .SXTP were the laggards with a
0.9% fall.
The British airline easyJet EZJ.L fell 2.1%, a day after
reducing its flying schedule as frequent changes in government
travel restrictions hit demand.
Fellow airlines Ryanair RYA.I and IAG ICAG.L and cruise
operator Carnival CCL.L fell between 3.5% and 6%.
The plane manufacturer Airbus AIR.PA fell 2% after
deliveries slipped in August, slowing its recovery from a
meltdown in demand induced by the coronavirus. STOXX 600 index has been stuck in a tight range since
June, but investors are looking to Thursday's ECB policy meeting
as a possible catalyst.
Analysts are not expecting any changes in rate policy,
focusing instead on the central bank's inflation outlook and
commentary on the euro's recent strength.
"We believe the ECB will try to address the downside risks
to inflation and recent euro appreciation through words rather
than actions at this point," wrote analysts at TD Securities.
Investors were following developments around Britain's plan
for life outside the European Union's single market from Jan. 1
as the UK published legislation that it acknowledged would break
a binding agreement with the EU, casting a dark shadow over the
latest round of talks on a free trade agreement.
Expectations for third-quarter STOXX 600 earnings have
worsened, according to the latest data from Refinitiv.
Profits are now expected to fall 39.2% for the 600 companies
listed on the pan-European index, against an expectation of
37.9% a week ago.