UPDATE 2-European shares slip as BREXIT, lockdown worries outweigh upbeat earnings

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* European COVID-19 curbs weigh on sentiment
* UBS, Logitech surge after quarterly earnings
* EU, Britain struggle to make trade deal progress
* Auto, chemicals firms to be most affected by no-deal
Brexit -ING

(Updates to close)
By Sruthi Shankar and Susan Mathew
Oct 20 (Reuters) - European stocks fell on Tuesday as
worries about coronavirus curbs and BREXIT countered optimism
generated by strong earnings, including from Swiss bank UBS and
consumer giant Reckitt Benckiser.
Italy, Spain and Britain imposed curbs to limit the spread
of new coronavirus cases that threaten to derail a budding
economic recovery. The latest curbs in Ireland will see GDP fall
by 3.5% this year, Finance Minister Paschal Donohoe said.
The pan-region STOXX 600 .STOXX has recovered about 35%
from a pandemic-panic plunge in March, but is struggling to
reach pre-crisis levels, plateauing as the second-wave of the
disease grips. On Tuesday, the index closed down 0.35%.
Meanwhile, the European Union and Britain struggled to make
progress on a trade deal to avoid a fast-approaching disruptive
finale to the five-year drama of Britain's departure from the
EU. "Both sides realistically have until the middle of November
(to strike a deal). That means there is still time for things to
go wrong, and the risk of there being no deal, or only a
wafer-thin agreement, are uncomfortably high," said Timme
Spakman, economist, international trade analysis at ING.
"The economic impact of a no-deal BREXIT on the EU economy
will be significant... The automotive industry .SXAP ,
agriculture and chemical sectors .SX4P stand to be the most
affected." Earnings were a bright spot. UBS UBSG.S rose 2.7% as it
posted a 99% jump in quarterly profit, while computer
peripherals maker Logitech International LOGN.S gained 16%
after it raised its full-year forecast. Robust demand in the United States and China helped cognac
maker Remy Cointreau RCOP.PA post a broader recovery in
second-quarter sales, but its shares slipped 2.4% with some
analysts saying it may have been priced in.
Swedish telecoms operator Tele2 TEL2b.ST fell 4.7% after
it stuck to its outlook for roughly unchanged operating profit
in 2020. "What most investors are looking at it is how strong 2021
recovery will be," said Nick Peters, multi-asset portfolio
manager at Fidelity International.
Third-quarter profits for companies on STOXX 600 are
expected to drop 36.7%, Refinitiv data shows, improving from a
51% plunge in the previous quarter when economic losses from the
pandemic peaked.
London's FTSE .FTSE rose as much as 0.7% before ending
flat. Bank of England policymaker Gertjan Vlieghe said the
central bank could need to add more stimulus. .L