UPDATE 2-European stocks pause near record high, UK outperforms

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* UK midcap stocks hit record high
* Deliveroo inches up as retail investors join trading
* French power group EDF leads STOXX 600 gains

(Adds comments, updates prices throughout)
By Sruthi Shankar and Shreyashi Sanyal
April 7 (Reuters) - European stocks were little changed and
closed just short of record highs on Wednesday, with healthcare
shares among top decliners, while optimism over speedy
vaccination drives and a weaker pound helped UK equities
outperform.
The pan-European STOXX 600 index .STOXX edged 0.1% lower,
trading just below the record closing peak of 435.26 points on
Tuesday. Healthcare stocks .SXDP fell 0.8%, leading sectoral
declines.
UK's exporter-heavy FTSE 100 .FTSE gained 0.9% as a weaker
pound lifted the dollar earners, while the domestically focussed
midcap index .FTMC hit a record high as Britain began the
roll-out of Moderna's COVID-19 vaccine. .L "It appears that while the UK blue chip index, and its
mid-cap sibling, enjoy the optimism surrounding the country's
post-COVID comeback, sterling has been saddled with concerns
over the vaccine programme," said Connor Campbell, an analyst at
Spreadex.
A rebound in economically sensitive sectors such as banks,
energy and automakers pushed European stocks to pre-pandemic
levels earlier this week, as investors bet on a strong global
economic recovery, driven by vaccines and unprecedented stimulus
measures.
A final reading of IHS Markit's Purchasing Managers' Index
showed euro zone business activity returned to growth in March,
underpinned by a record expansion in the manufacturing sector
and as the service industry coped with new lockdowns better than
expected. "There is a case to be made in the second half of the year
when Europe really has its moment, because it has lagged the
rest in its recovery. They've finally managed to ramp up vaccine
production and distribution," said Julien Lafargue, head of
equity strategy at Barclays Private Bank.
With earnings season set to kick off this month, investors
are hoping for a strong recovery.
Profits for companies on the STOXX 600 are expected to jump
47.4% in the first quarter versus beaten-down numbers a year
earlier, according to Refinitiv IBES data.
Recent UK market debutant Deliveroo Holdings ROO.L rose
2.1% to 285.7549 pence in its first day of unrestricted trading
when retailers were allowed to trade. It has shed almost 28%
since last week when it priced its initial public offering at
390 pence. French M&A was also in focus, with power group EDF EDF.PA
jumping 10.5%, after sources told Reuters the government expects
to spend around 10 billion euros ($11.87 billion) to buy out
minority shareholders as part of a proposed restructuring of the
company. Amundi AMUN.PA rose 2.9% after Societe Generale SOGN.PA
said it was in exclusive talks to sell most of asset manager
Lyxor to Amundi for 825 million euros ($979 million).