UPDATE 2-Kering, slowing coronavirus cases in China lift European shares to new highs

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* STOXX 600 hits second straight record high
* China-focused auto, resources sectors lead gains
* Kering rallies after upbeat results; other luxury stocks
follow
* Euro zone industrial production tumbled in December
* S&P Global says coronavirus to hurt euro zone, UK growth

(Updates to close)
By Susan Mathew
Feb 12 (Reuters) - A rally in luxury stocks led by
Gucci-owner Kering and optimism over fewer new coronavirus cases
in China pushed an index of European shares and the German
benchmark to new highs on Wednesday.
Kering PRTP.PA jumped 6.3% after reporting better than
expected quarterly results. The company remained upbeat about
its longer-term prospects, despite saying it is halting spending
in China on virus fears. That lifted other luxury stocks such as Louis Vuitton owner
LVMH LVMH.PA , Christian Dior DIOR.PA , Hugo Boss BOSSn.DE
and Burberry BRBY.L , up between 1% and 3%.
Stronger iron ore and base metal prices lifted
China-sensitive commodity .SXPP and auto stocks .SXAP after
the country reported its lowest number of new coronavirus cases
in two weeks, bolstering a forecast by Beijing's senior medical
adviser for the outbreak to end by April.
In their second consecutive session of record highs, the
pan-European STOXX 600 index .STOXX closed up 0.6% at 431.16,
while Frankfurt's DAX .GDAXI finished 0.9% higher. Investors
seemed to look past data that showed the bloc's industrial
production fell more then expected in December.
"It seems risk appetite is here to stay," said Edward Moya,
senior market analyst at OANDA New York.
"Expectations are growing that ... China will be able to
fulfil their goal of doubling GDP and incomes in the decade to
2020," he said, referring to comments made by a top Chinese
think tank. But investors still remained watchful of further
international spread of the virus and its net economic impact.
Analysts and bankers say opaque Chinese data and lack of
precedent hinder clear estimates. Rating agency S&P Global warned that the likely subsequent
slowdown in China's economy could shave 0.1 to 0.2 percentage
points off both euro zone and UK growth this year. Miner Rio Tinto RIO.L cited efforts taken to contain the
virus's spread as the reason for a slowing in copper concentrate
shipments to China.
On the STOXX 600, Evolution Gaming EVOG.ST shot up 14% and
engineering company Trelleborg TRELb.ST surged 10% after
better-than-expected earnings.
Languishing at the bottom was Dutch bank ABN Amro ABNd.AS
after clocking a weaker-than-expected fourth-quarter net
income.