UPDATE 3-European stocks hit over 4-month highs after EU recovery fund sealed

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* German stocks touch February highs on tech sector boost
* Adevinta jumps on $9.2 bln deal to buy eBay's classifieds
unit
* Randstad gains on smaller-than-expected drop in core
earnings
* Novartis , BHP down after earnings

(Updates to close)
By Sruthi Shankar and Susan Mathew
July 21 (Reuters) - European shares closed above four-month
highs on Tuesday, with Germany's blue-chip DAX erasing almost
all its losses for the year, after EU leaders agreed on a
landmark stimulus package to revive the bloc's economies from a
coronavirus-induced slump.
The pan-European STOXX 600 .STOXX jumped as much as 1.3%
before ending 0.3% higher at its highest since early March, as
did an index of euro zone blue-chip stocks .STOXX50E which
rose 0.5%.
Oil stocks .SXEP were the biggest boost, also marking
their best session since early March, as crude prices surged.
O/R
The global mood also brightened on growing optimism about a
COVID-19 treatment after promising early data from trials of
three potential vaccines. MKTS/GLOB
European Union leaders clinched a "historic" deal in the
early hours of Tuesday on a 750-billion-euro ($856
billion)recovery fund and its related 1.1-trillion-euro budget
for 2017-2021 that they hope will help repair the continent's
deepest recession since World War Two. "It will add to the foundation of the current bull market,"
said Teeuwe Mevissen, senior macro strategist at Rabobank.
"It will have a long-term impact in the sense that if the
European Union finds itself in a similar situation in the
future, then markets will expect that governments will come to
the rescue."
Germany's DAX .GDAXI gained 1% finishing at five-month
highs, boosted by tech major SAP SE SAPG.DE .
A gauge of European stock market volatility .V2TX sank to
its lowest since Feb. 25.
Spain and Italy, among the south European countries set to
benefit from the EU deal, saw their main indexes .IBEX
.FTMIB gain 0.2% and 0.5% respectively.
Eyes are now on likely U.S. aid legislation aimed at
supporting its economy. Topping the STOXX 600 index was Adevinta ADEV.OL which
soared 26% after U.S. firm Ebay Inc EBAY.O agreed to sell its
classified ads business to the Norwegian group in a deal worth
$9.2 billion. In earnings-driven moves, Randstad Holding RAND.AS jumped
almost 9% after the staffing company reported a
smaller-than-expected drop in quarterly core earnings.
The biggest drag on the STOXX 600 was Novartis NOVN.S ,
down 1.9% after the drugmaker trimmed its 2020 sales forecast as
coronavirus related disruptions hit its quarterly revenue.
Europe's healthcare index .SXDP was the worst sectoral
performer, down 1% with AstraZeneca AZN.L also declining after
a University of Oxford researcher flagged uncertainty about
rolling out its possible COVID-19 vaccine - licensed to
AstraZeneca, by the end of the year. London's FTSE 100 .FTSE ended flat with shares of mining
giant BHP BHPB.L also sliding 2.6% after it warned of risk to
demand.

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Germany's DAX: social distancing with record highs? https://tmsnrt.rs/2CUS9Rk
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