UPDATE 3-European stocks end higher as Trump-driven selling eases

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* Markets recover from early losses
* U.S., European data spark hopes of more stimulus
* Spain's ACS surges on Vinci 's offer for unit

(Updates to market close)
By Sruthi Shankar
Oct 2 (Reuters) - European stocks closed slightly higher on
Friday, shaking off early weakness sparked by news that U.S.
President Donald Trump tested positive for COVID-19 as investors
pinned hopes on more stimulus.
The pan-European STOXX 600 .STOXX rose 0.3%, capping
another volatile week which started with a bout of bargain
hunting in beaten-down sectors that helped the benchmark record
a 2% weekly gain.
European bourses started the day with losses of more than 1%
after Trump said that he and his wife Melania had tested
positive for the coronavirus and were going into quarantine,
adding to uncertainty around the Nov. 3 election. "The market has been volatile of late and valuations are
high so this sell-off does not seem to be anything beyond
ordinary," said Louise Dudley, global equities portfolio manager
at Federated Hermes. "A lot depends on how the virus affects
Trump."
Helping markets stabilise into the close were hopes of more
U.S. stimulus after data showed job growth slowed more than
expected in September in the world's largest economy.
Meanwhile, euro zone inflation fell deeper into negative
territory last month, raising pressure on the European Central
Bank to add stimulus. A second wave of coronavirus cases in Europe has kept
investors on edge, with Paris set to be placed on maximum
COVID-19 alert from as soon as Monday, a move likely to force
the closure of restaurants and bars and impose further
restrictions on public life. Euro zone stocks .STOXXE slipped, while UK's FTSE 100
.FTSE rose 0.4% at the end of a big week for Brexit
negotiations.
German Chancellor Angela Merkel said she had no breakthrough
to announce in European Union talks with Britain but remained
optimistic that sealing a new trade deal was still possible
before the end of the year. Among individual stocks, Spanish engineering and
infrastructure group ACS ACS.MC surged 25.8% after French
rival Vinci SGEF.PA made an offer to buy ACS's industrial unit
Cobra for 5.2 billion euros ($6.10 billion). Vinci rose 4.4%, driving Europe's construction & materials
index .SXOP up 1.7%.
French telecom companies Orange ORAN.PA , Bouygues Telecom
BOUY.PA and Iliad ILD.PA rose between 1.1% and 2.6% after
the results of an auction of the country's 5G spectrum sale.
Gold miner Centamin CEY.L slumped 22.2% to the bottom of
the STOXX 600 after it forecast a fall in annual production as
it delayed some open-pit mining operations at its key Sukari
mine in Egypt.