UPDATE 2-European stocks fall after ECB holds fire; German shares rebound

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* ECB sends strongest signal yet of Dec policy easing
* German DAX recovers from 5-month lows, up 0.3%
* Investors still unsettled by new European lockdowns
* ASM Intl, Shell gain on upbeat earnings; Nokia slips
* Ireland's ISEQ jumps on Flutter Ent's surge

(Updates to close)
By Susan Mathew and Devik Jain
Oct 29 (Reuters) - European stocks ended a volatile Thursday
weaker, hitting session lows after the European Central Bank
left its ultra-easy policy unchanged and hinted at more support
in December.
The pan-European STOXX 600 index .STOXX closed down 0.1%,
having fallen up to 1% after the ECB resisted pressure to unveil
more stimulus amid a new wave of the pandemic, but provided the
clearest hint yet of fresh easing at its next meeting in
December. "Despite no immediate change in policy at today's meeting,
this wasn't a sign of the ECB being satisfied with the current
environment," said Jai Malhi, Global Market Strategist at J.P.
Morgan Asset Management.
"Equity markets have been struggling to cope with the risks
posed by the renewed spike in infections...In December, pressure
will be huge for the ECB to walk the walk. The major question
remains - whether the tools available to the ECB will be enough
to satisfy markets and support the economy through the
pandemic."
Thursday's moves follow a sharp sell-off in the previous
session when Germany and France imposed nationwide restrictions
- nearly as severe as the ones that drove the global economy
this year into its deepest recession in generations - as
coronavirus cases surged.
Rebounding from five-month lows, the German DAX .GDAXI
advanced 0.3%, supported by the communications and technology
sector.
Spain's IBEX .IBEX underperformed, closing down 1% at a
seven-month low. Bank of Spain called for a more bold response
from the European Union to help firms and households weather any
deterioration in the COVID-19 crisis, warning of risks to the
stability of the banking sector. Europe's tech sector .SX8P rose 1.1% lifted by Dutch chip
equipment supplier ASM International's ASMI.AS 6.5% gain as it
raised its fourth-quarter guidance. Oil major Royal Dutch Shell RDSa.L rose 3.6% on raising
dividend after handily beating third-quarter profit forecasts.
This saw the energy sector .SXEP rise more than 1% despite
sliding oil prices. O/R
Leading gains was the travel sector .SXTP , posting its
biggest intraday gain in over three weeks, as Flutter
Entertainment FLTRE.I jumped 8.3% on the possibility of
entering the elite Euro STOXX 50 blue-chip index .STOXX50E .
The jump helped Ireland's ISEQ .ISEQ log its best day
since May.
In the busiest day for European reporting season, telecom
stocks .SXKP took a beating as Finnish telecom network
equipment maker Nokia NOKIA.HE slumped 18.5% after it cut its
full-year profit forecast.