* STOXX 600 at strongest close since record high in August
* Reckitt soars on forecast lift
* Logitech slides after results
* Travel and leisure stocks lead gains
(Updates to market close)
By Anisha Sircar and Ambar Warrick
Oct 26 (Reuters) - European stocks hit a more-than two-month
high on Tuesday, ending just below record levels as strong
results from UBS, Reckitt Benckiser and others added to overall
optimism about the third-quarter earnings season.
The pan-European STOXX 600 rose 0.8% to 475.74
points, its highest closing level since a record-high finish of
475.83 in August.
The financial services sector rose 0.9% as the
world's largest wealth manager, UBS, posted its best
quarterly profit since 2015, helped by robust trading activity.
Lysol cleaning products maker Reckitt Benckiser Group
jumped 5.8% and was among the top gainers on Britain's
FTSE 100 after it raised its full-year forecast and beat
estimates for third-quarter sales.
Germany's DAX and France's CAC 40 gained
1.0% and 0.8%, respectively.
European travel and leisure stocks were the best
performers for the day, adding 1.9% on gains in hotel operator
Whitbread.
The stock surged 4.4% after it reported a smaller half-year
loss and predicted a full recovery at its UK hotels in 2022.
"A lot of the companies have been benefiting from the high
prices they've been charging," said Equiti Capital macro
economist Stuart Cole, who expects a positive earnings season
for European companies.
"Equity markets are doing really well despite soaring energy
prices, the threat of higher interest rates and yields generally
rising...all points to markets getting more comfortable with
where things are."
Despite concerns about soaring commodity prices and
supply-chain bottlenecks driving higher inflation, a series of
strong earnings reports put the STOXX 600 on course to end
October with gains while erasing all of September's losses.
Focus will also be on the European Central Bank meeting on
Thursday, where policymakers are set to meet amid soaring
inflation expectations in the euro zone. The ECB has said the
recent inflation surge will be transitory and has clearly
indicated no policy tightening until it averages around its 2%
target.
Rising inflation expectations kept bond yields elevated,
helping the European banks sector add 0.4%.
Swiss drugmaker Novartis rose 1.1% after reporting
a rise in adjusted operating profit and forecasting higher peak
sales for its two best-selling pharmaceuticals.
Among decliners, computer peripherals maker Logitech
International slumped 4.3% after it confirmed full-year
earnings outlook and warned of supply chain disruptions.
French telecoms operator Orange fell 1.7% after
saying its third-quarter profit was hit by a drop in
co-financing returns.
(Reporting by Anisha Sircar; Editing by Anil D'Silva and
Uttaresh.V)