UPDATE 2-European shares end higher on upbeat German data

* German Q4 GDP grows more than expected
* AstraZeneca (NASDAQ:AZN) to deliver fewer-than-expected vaccines to EU
* Sportswear maker Puma drops as lockdowns affect sales
* Norway's Bakkafrost bottoms out STOXX 600

(Updates to market close)
By Shashank Nayar and Ambar Warrick
Feb 24 (Reuters) - European shares rose on Wednesday as
sectors primed to benefit from economic recovery were supported
by strong German growth data, although concerns over a possible
rise in inflation and lofty equity valuations kept gains in
check.
The pan-European STOXX 600 .STOXX ended 0.5% higher, with
Germany's DAX .GDAXI adding 0.8% as data showed bullish
exports and solid construction activity helped Europe's biggest
economy to grow by a stronger-than-expected 0.3% in the fourth
quarter. Travel stocks .SXTP jumped 1.9% to near one-year highs,
leading European sector gains on optimism around major countries
lifting coronavirus-induced lockdowns.
Still, global airline industry body IATA flagged further
headwinds for airlines in 2021. "The market has fallen recently due to lofty valuations, but
investors are becoming more accepting of the fact that as
European economies slowly reopen and earnings improve, the
current equity valuations could be justified," said Chris
Beauchamp, chief market analyst at IG Group.
The benchmark STOXX 600 has rebounded nearly 50% from its
March 2020 lows, also led by historic stimulus measures, but it
has still far underperformed a 75% jump in the U.S. S&P 500
.SPX .
U.S. Federal Reserve Chair Jerome Powell reiterated on
Tuesday that interest rates will remain low despite indications
of rising inflation, assuaging some fears of a sudden tapering
in monetary stimulus. "While another stimulus package will certainly be welcomed
by market participants, inflation fears are still present,
despite those concerns being downplayed by officials," said
Milan Cutkovic, market analyst at Axi.
"As more countries are planning the reopening of their
economies, the focus could slowly shift back to value stocks."
The rotation out growth-driven stocks was apparent, with the
technology sector .SX8P losing nearly 4% this week, lagging
all of its regional peers.
In company news, AstraZeneca AZN.L dipped 0.2% after it
told the European Union that it expects to deliver less than
half the COVID-19 vaccines it was contracted to supply in the
second quarter. Norwegian salmon farmer Bakkafrost BAKKA.OL was the
biggest percentage loser on the STOXX 600 for a second session
after it posted a fourth-quarter loss due to the pandemic.
German sportswear company Puma PUMG.DE dropped 2.1% after
saying it expects a heavy impact on its results from lockdowns
through the end of the second quarter.
Telecom Italia TLIT.MI surged 9.2% after it said profit
and sales should stabilise this year.