UPDATE 2-UK shares jump on vaccine optimism; banks, travel stocks shine

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* Moderna vaccine 94.5% effective in interim trial data

* Vodafone surges on strong annual outlook

* Time is running out for Brexit deal, EU tells Britain

* FTSE 100 up 1.7%, FTSE 250 adds 1.8%
(Adds analyst comment, details on Moderna vaccine, updates to
close)

By Devik Jain

Nov 16 (Reuters) - British stocks jumped on Monday as
positive vaccine data from drugmaker Moderna bolstered hopes of
a swift economic recovery to pre-pandemic levels, offsetting
concerns over a post-Brexit trade deal with the European Union.

The blue-chip FTSE 100 index closed 1.7% higher,
after Moderna Inc reported its experimental vaccine is
94.5% effective in preventing COVID-19 based on interim data
from a late-stage trial.

Pfizer Inc and German drugmker BioNTech SE
made a similar announcement on Nov. 9. British drugmaker
AstraZeneca Plc, which is yet to release results from
its late-stage vaccine trials, fell 1%.

The domestically focussed mid-cap FTSE 250 index
ended 1.8% higher, with cinema operator Cineworld Group Plc
jumping 13.5% to the top of the index. The wider travel
and leisure sub-index gained 3.2%.

"This (vaccine news) is more evidence that an end to the
pandemic is on the horizon and that the economy can eventually
reopen without fears of further lockdowns," said David Trainer,
CEO of New Constructs, an investment research firm based in
Nashville, Tennessee.

Energy, bank and mining
stocks provided the biggest boost to the FTSE 100,
which has already gained more than 15% this month, helped by a
slew of local stimulus measures and hopes of a
sooner-than-expected economic recovery.

Bank stocks also gained following news that PNC Financial
Services Group Inc would buy the U.S. business of
Spanish lender BBVA for $11.6 billion in cash.

Vodafone Group Plc surged 6.9%, after saying it was
increasingly confident about its full-year performance, while
tech firm Smiths Group rose 4.8%, after highlighting a
30 million-pound cost-saving target for FY21.

Companies that have benefited from people staying home
during the pandemic, such as Rentokil Initial, Just Eat
Takeaway.com and Ocado Group Plc, tumbled
between 3.3% and 4.1%.

Meanwhile on the Brexit front, EU warned Britain on Monday
that time was fast running out for a trade deal, as negotiators
in Brussels began a last-ditch attempt to avoid a tumultuous
exit at the end of December.
(Reporting by Devik Jain in Bengaluru
Editing by Uttaresh.V and Matthew Lewis)