UPDATE 2-European stocks hit record highs after Fed holds stance

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Strong domestic demand propels German industrial orders
* Fed committed to support economy until recovery more
secure
* Astrazeneca gains despite restrictions on vaccine use
* UK's Johnson Matthey jumps on upbeat forecast

(Adds comments, details; Updates prices throughout)
By Shreyashi Sanyal
April 8 (Reuters) - European stocks hit record highs on
Thursday as optimism grew around a global stimulus-fuelled
economic rebound after the U.S. Federal Reserve signalled it was
in no hurry to tighten its monetary policy.
The pan-European STOXX 600 index .STOXX rose 0.6%, adding
to gains notched earlier this week when the index erased all of
its pandemic-driven losses.
Fed officials remain wary about the ongoing risks of the
coronavirus pandemic and are committed to bolstering the economy
until its recovery is more secure, minutes of the central bank's
latest policy meeting released on Wednesday showed. "A dovish set of meeting minutes from the Federal Reserve
has further reassured investors that Jay Powell and the gang
won't be turning off the stimulus taps any time soon," Connor
Campbell, an analyst at Spredex, wrote in a morning note.
European Central Bank policymakers at their meeting last
month debated a smaller increase in bond purchases and agreed to
front-load the buying this quarter on condition it could be cut
later if conditions allow, the accounts of their meeting showed.
Data showed German industrial orders rose for the second
month in a row in February, driven by strong domestic demand - a
further sign that manufacturers are set to cushion a
pandemic-related drop in overall output in the first quarter.
European economies are holding up well despite a third wave
of the pandemic, according to Mark Haefele, chief investment
officer of global wealth management at UBS.
"With more vaccines becoming available from Q2, which should
allow a sustainable reopening, we continue to expect a sharp
rebound in the latter half of 2021, supported by high levels of
savings, pent-up demand, and accommodative monetary and fiscal
policy."
Investors broadly looked past news that several European
countries had announced restrictions on the use of AstraZeneca (NASDAQ:AZN)'s
AZN.L COVID-19 vaccine in younger people, after a link was
found to very rare blood clots. The Anglo-Swedish drugmaker's shares AZN.L climbed 2.0%.
Holland-based technology investor Prosus NV PRX.AS rose
slightly after it sold 2% of China's Tencent Holdings Ltd
0700.HK for $14.7 billion in the world's largest-ever block
trade. Chemicals maker Johnson Matthey JMAT.L gained 1.5% after
it forecast annual profit at the top end of market expectations
and said it had started a strategic review of its health
business.