UPDATE 2-European stocks end lower as risk rally winds down

* Miners weigh down FTSE 100
* Spain's Unicaja jumps on Liberbank merger
* Thin volumes keep markets volatile

(Updates to market close)
By Sruthi Shankar and Ambar Warrick
Dec 30 (Reuters) - European stocks ended a five-day winning
streak on Wednesday as investors locked in recent gains,
although positive vaccine and Brexit trends pointed to a
stronger 2021 for regional markets.
The pan-European STOXX 600 .STOXX edged 0.3% lower, still
staying close to a 10-month high. The index is set to shed more
than 3% this year, owing to disruptions caused by a second wave
of coronavirus infections towards the end of the year.
But the signing of a Brexit deal, coupled with the rollout
of a vaccine programme has made investors optimistic about a
recovery in 2021.
"There are some things happening out there that suggests
that risk appetite is strong," said Russ Mould, investment
director at AJ Bell.
"If you're looking through to 2021, we're hoping that the
vaccines will begin to counteract the effect of the pandemic,
and hopefully economic activity will begin to normalise."
Travel and leisure stocks .SXTP , one of the worst
performing sectors this year, added 0.2%, as they stand to be
among the top beneficiaries of a coronavirus vaccine.
German shares .GDAXI ended a shortened session about 0.3%
lower, in their last trading day this year. But they added more
than 3% in 2020, thanks to flows into heavyweight technology
stocks.
Spanish lender Unicaja UNI.MC rose 2.1%, while Liberbank
LBK.MC was down 4.1%, after they announced an all-in share
deal that would create the country's fifth-biggest bank.
The deal marks an acceleration of the sector's consolidation
after the approval of a merger between state-owned Bankia
BKIA.MC and Caixabank CABK.MC earlier this month.
The wider banking index .SX7P fell 0.3% and is among the
worst performing sectors this year alongside energy, as mounting
bad loans due to the impact of the pandemic and record low
interest rates hammered the appeal for the sector.
UK stocks ended lower despite the local approval of
AstraZeneca's AZN.L COVID-19 vaccine. Resource stocks were the
biggest weight on the benchmark blue-chip index .FTSE , due to
weakness in metal prices. IRONORE/ MET/L
Rio Tinto RIO.L and Anglo American AAL.L were among the
biggest drags on the FTSE 100.
Meanwhile, Wall Street indexes hit all-time highs this week
on hopes that U.S. lawmakers will approve a large fiscal
stimulus package despite delays.