* STOXX reverses losses, ends 0.4 pct higher
* Renault, Smurfit Kappa rise on deal-making talk
*
* Key Trump adviser resigns(Recasts, adds quote and detail, updates prices at close)
By Julien Ponthus and Kit Rees
The pan-European STOXX 600 index ended with a gainof 0.4 percent, climbing steadily through the day and shakingoff worries over the resignation of Donald Trump's economicadviser Gary Cohn, seen as a bulwark against protectionistforces within the
Shares in tech stocks led gainers with a 1.2 percentrise, while autos advanced 0.6 percent. Renaultwas the biggest auto gainer, up 5.6 percent followinga Reuters report that Nissan was in talks with the carmaker to buy the bulk of the French state's 15 percent Renaultholding.
Also among French stocks, shares in ADP jumped 6.1percent after a media report said the government would go aheadwith plans to privatise the French airport operator and sell its50.6 percent stake entirely.
French construction group Vinci, which has an 8percent stake in ADP and expressed an interest in acquiringmore, rose 0.4 percent.
Paper and packaging firm Smurfit Kappa saw a secondsession of gains, up 6.3 percent to be among the biggest gainerswith traders citing a Bloomberg report that the Irish firm wasprepared to open takeover talks at
This follows Smurfit Kappa's rejection of an
"The psychology amongst CEOs and boards is probably 'let'sstart doing the deals' rather than waiting for tomorrow, so Ithink you'll see a pick-up in corporate activity on both sides,"said Philip Dicken, head of European equities at ColumbiaThreadneedle Investments.
"Things are getting better, valuations are ticking up, andthe cost of debt is going to be more expensive ... so suddenlyyou're forced into doing something and you want a piece of thisaction when it comes to the growth," he said, referring to CEOs.
British plane engine maker Rolls-Royce was the bestSTOXX index performer, surging 11.5 percent after saying itremained on track to meet its financial goals for 2020.
Analysts at UBS said that Rolls-Royce's results were"strong" and that a major milestone had been passedsuccessfully.
Among the fallers, the advertising sector retreated afterthe Financial Times said P&G would cut agency spending by