UPDATE 2-Miners lift European stocks, travel firms hit by surging COVID-19 cases

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* STOXX 600 volatile in thin summer trading
* Travel & leisure sector hit by quarantine rules
* Bullish brokerage calls lift luxury stocks
* Real estate stocks hit by Unibail drop

(Updates to market close)
By Sruthi Shankar
Aug 17 (Reuters) - European shares closed higher as
China-exposed miners jumped on fresh stimulus for the world's
second-largest economy, but concerns about a resurgence of
coronavirus cases in the region kept gains in check.
Travel and leisure stocks .SXTP fell 1.5%, continuing to
slide after Britain added France and other countries to its
quarantine list last week.
Adding to the sector's woes, Italy reimposed restrictions
like shutting discos and clubs over the weekend and Germany
declared nearly all of Spain, including the tourist island of
Mallorca, a coronavirus risk region. British Airways-owner IAG ICAG.L fell 5.3% and
InterContinental Hotels IHG.L , which runs the Crowne Plaza
brand, slipped 2.4% as Britain saw a fresh surge in COVID-19
cases.
EasyJet EZJ.L was down 4.6% on news it would close three
of its bases in Britain, while Ryanair RYA.I said it would
reduce its flight capacity by a further 20% during September and
October. "The trend of growing European new infections looks unlikely
to abate for now and could continue to weigh on sentiment,"
analysts at Commerzbank wrote in a note.
"We expect travel & leisure to be one of the last sectors to
recover from the pandemic," they said.
However, the pan-European STOXX 600 index .STOXX ended
0.3% higher, with miners .SXPP jumping 1.7% after fresh
liquidity moves by the central bank in China, the world's top
metals consumer. Chipmakers also rose, while luxury stocks such as LVMH
LVMH.PA , Burberry BRBY.L and Kering PRTP.PA climbed
between 0.4% and 1.9% after Jefferies analysts said in a note
that the strength of their businesses in China could help them
to gain market share.
Pernod Ricard PERP.PA gained 3.3% after Barclays upgraded
the French spirits maker to "overweight." Markets generally appeared to be in a holding pattern ahead
of August business activity data later this week, which could
shed light on the pace of an economic recovery, while the U.S.
Federal Reserve's policy minutes are also due on Wednesday.
France's Sanofi SASY.PA gained 1.2% after it agreed to buy
U.S. company Principia Biopharma Inc PRNB.O for around $3.7
billion. Healthcare stocks provided the biggest boost to the
STOXX 600. Real estate firms .SX86P took a hit as Europe's largest
property firm Unibail-Rodamco-Westfield URW.AS slid 4.9% after
a media report said it was considering rights issue. The company
said no decision had been made.