UPDATE 2-European stocks end higher on tech boost, stimulus hopes

* Tech stocks lead gains
* German govt agrees on extension of coronavirus relief
* European patients infected months after initial recoveries
* Elekta tops STOXX 600 on surge in Q1 profit

(Adds details, updates to close)
By Sruthi Shankar and Ambar Warrick
Aug 26 (Reuters) - European stocks closed higher on
Wednesday as news of additional stimulus in Germany and
anticipated economic recovery measures in France overcame
concerns about rising COVID-19 cases across the continent.
The pan-European STOXX 600 index .STOXX added 0.9%, with
German stocks .GDAXI up 1% and France's CAC 40 .FCHI 0.8%
higher.
Having led the recovery from March's pandemic-driven lows,
technology shares .SX8P were the day's best performers,
mirroring gains on Wall Street.
Heavyweight German enterprise software maker SAP SE
SAPG.DE rose 2.2% after U.S. peer Salesforce.com CRM.N
raised its 2021 revenue forecast. Germany's coalition parties agreed to extend measures to
cushion the economic effects of the coronavirus crisis at a cost
of up to 10 billion euros, while France is set to present its
economic recovery plan on Sept. 3.
"This is an important sign for investors, as another
standstill of the European economy would have devastating
consequences," said Milan Cutkovic, Market Analyst at AxiCorp.
"The coordinated response of the European Union to the
Corona crisis has also strengthened confidence."
Caution was, however, still evident as COVID-19 cases on the
continent continued to rise and two confirmed cases of
coronavirus re-infections in Europe raised concerns about
immunity to the virus. Markets were also waiting for U.S. Federal Reserve Chairman
Jerome Powell's speech on Thursday, which could offer further
cues on the U.S. economic recovery.
Economic data in the past week has muddied the outlook for
the euro zone recovery, keeping the STOXX 600 in a holding
pattern about 15% below its all-time high, even as U.S. stocks
hit new peaks on easing U.S.-China trade tensions and hopes of a
coronavirus treatment.
"We've had a disappointing set of flash PMIs last week,
which gives you an impression that after the initial rebound,
the recovery is going to stall," said Andrea Cicione, head of
strategy at TS Lombard.
Swedish radiation therapy equipment maker Elekta EKTAb.ST
topped the STOXX 600 after posting a bigger-than-expected
first-quarter profit. HiQ International HIQ.ST soared nearly 26% after private
equity firm Triton announced a 3.9 billion crown ($444.92
million) cash bid for the Swedish IT consultancy firm.
Telecom Italia TLIT.MI rose 5.1% after a local newspaper
reported the Italian government had given approval to U.S.
investment firm KKR KKR.N to buy a minority stake in its
secondary grid. Ambu AMBUb.CO , which makes diagnostic and life-support
devices for hospitals, slumped 13.4% after it cut its full-year
earnings forecast.