UPDATE 2-Weak U.S., euro zone data push European shares lower

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* STOXX 600 breaks 3-day winning streak
* U.S. manufacturing shrinks for second month in September
* Euro zone manufacturing contracts in September
* AstraZeneca falls U.S. FDA denies approval for treatment
* Britain's Greggs slides on slower sales growth

(Adds fresh comment, updates prices to close)
By Susan Mathew
Oct 1 (Reuters) - European shares ended a three-day winning
streak on Tuesday as investors were gripped by growth worries
after poor U.S. manufacturing data fanned fears of slowing
growth in the world's largest economy.
The pan-European STOXX 600 index .STOXX touched session
lows, and closed down 1.3% after data showed U.S. manufacturing
contracted for the second month in September, knocking U.S.
stocks. .N
This followed on from euro zone data that showed
manufacturing activity contracting at its steepest rate in
almost seven years. Given that economic indicators in the euro zone have been
weak recently, the U.S. data is a bigger disappointment for
investors because growth in the U.S. economy was expected to
rebound, said Hubert de Barochez, a markets economist with
Capital Economics.
All major sectors in Europe moved well into the red after
the data. German .GDAXI and French stocks .FCHI lost more
than 1% each.
Losses in London's FTSE 100 .FTSE were limited by a drop
in the pound ahead of UK Prime Minister Boris Johnson's
presentation of proposals for an amended Brexit agreement. A
weakness in the sterling tends to bode well for exporters in the
index. GBP/
Adding to the gloomy mood, stocks with exposure to Hong Kong
and Asia, such as Standard Chartered STAN.L , HSBC HSBA.L ,
Louis Vuitton owner LVMH LVMH.PA lost between 0.8% and 2.5%.
These stocks have been under pressure since early summer as
pro-democracy protests have stretched into four months. But they
lost ground on Tuesday after reports that a protestor in Hong
Kong was hit by a police bullet.
Healthcare stocks .SXDP also slid, with shares of
AstraZeneca AZN.L down 1.7% after the U.S. Food and Drug
Administration denied approval to the smoker's lung treatment
developed by the drugmaker. British baker Greggs GRG.L slid 12.5% to the bottom of the
STOXX 600 after it reported slower quarterly sales growth and
warned of rising cost pressures. Airlines were bright a spot with Ryanair RYA.I ,
International Consolidated Airlines ICAG.L and Air France-KLM
AIRF.PA rallying after Bank of America Merrill Lynch
reinstated a "buy" rating on the stocks and gave a positive
outlook for the sector.
These gains plus comments from U.S. trade adviser Peter
Navarro, who dismissed reports the White House could seek to
force Chinese companies to delist from U.S. exchanges, had
helped the pan-region index touch a two-month high in early
trade, before it turned to losses.
The STOXX 600 gained around 2% in the third-quarter compared
to 12% in the first three months of this year, as the U.S.-China
trade war worsened economic prospects and slowed a global stocks
rally that dates back almost a decade.