UPDATE 2-European stocks ends higher on vaccine cheer, M&A support

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* Pfizer vaccine update supports risky assets
* Britain's RSA jumps on merger deal
* Deutsche Boerse gains after ISS deal
* STOXX 600 on course for best month on record

(Updates to market close)
By Shashank Nayar and Sruthi Shankar
Nov 18 (Reuters) - European stocks closed higher on
Wednesday as more positive updates on COVID-19 vaccine and
merger activity in the region helped offset worries about the
fast-spreading virus.
The pan-European STOXX 600 index .STOXX rose 0.4%,
returning to a more than eight-month high hit earlier this week.
Economically sensitive stocks such as automakers .SXAP ,
banks .SX7P , miners .SXPP and retailers .SXRP rose more
than 1%, leading sectoral gains.
After a sluggish start, European bourses got a boost from
news that final results from Pfizer Inc's PFE.N COVID-19
vaccine trial showed its shot had a 95% success rate and two
months of safety data, paving the way for it to apply for an
emergency U.S. authorization. However, the market response was measured as investors
expect any vaccine rollout to take time, while more U.S. and
European restrictions in the absence of fresh stimulus could
weigh on economic activity.
"If a vaccine were somehow to be available even by December,
that would be great. But the impact is going to be very
marginal," said Chris Beauchamp, chief market analyst at IG.
"Investors are aware that a vaccine will be here eventually
and some (stimulus) needs to come in fairly soon to provide that
bridge through the difficult period."
"That will provide the catalyst for a big move higher."
The number of reported global daily deaths from the novel
coronavirus stood at the highest ever on Tuesday, according to a
Reuters tally. Britain reported the highest number of deaths in
Europe. Despite shutdown worries, the STOXX 600 remains on track for
its best month on record as investors bet on a global economic
recovery, supported by trillions of dollars in stimulus and
hopes of a vaccine.
M&A also drove big swings in stocks, with Britain's RSA
Insurance RSA.L gaining 4.6% after it backed a 7.2 billion
pound ($9.55 billion) cash offer from Canada's Intact Financial
and Denmark's Tryg in one of Europe's biggest financial takeover
bids this year. Deutsche Boerse DB1Gn.DE rose 2.4% after the German stock
exchange operator said it would acquire an 80% stake in
corporate governance adviser Institutional Shareholder Services
(ISS) for about $1.8 billion. Among decliners, German automotive supplier Schaeffler
SHA_p.DE fell 5.3% after it set mid-term sales targets that
disappointed investors. Shipping group Maersk MAERSKb.CO slipped 1.0% after it
reported quarterly sales and operating profit in line with
previous forecast and maintained its earnings forecast.