UPDATE 2-European shares hit by renewed virus fears

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* STOXX 600 ends near session low
* Wirecard says missing assets did not exist, shares slump
* Lufthansa down as investor battles bailout terms

(Updates to market close)
By Sruthi Shankar
June 22 (Reuters) - European shares closed at a near
one-week low on Monday as signs of a resurgence in coronavirus
cases in Germany and elsewhere unnerved investors who were
hoping for a swift economic recovery from the crisis.
After switching between gains and losses earlier in the
session, the pan-European STOXX 600 index .STOXX ended 0.8%
lower, led by losses in the food & beverage .SX3P , telecom
.SXKP and oil & gas .SXEP sectors.
Scandal-hit German payments company Wirecard WDIG.DE shed
another 44% as it said a quarter of its assets totalling 1.9
billion euros ($2.13 billion) that auditor EY had been unable to
account for probably did not exist. Its stock has shed more than 70% of its value over the past
week.
The World Health Organization reported a record increase in
global coronavirus cases on Sunday, while Germany's COVID-19
reproduction rate jumped to 2.88, a rate showing infections are
rising above the level needed to contain the disease over the
longer term. "There remains a degree of concern that a rise in infection
rates ... could well derail the prospects for a recovery as
economies continue to try and re-open," said Michael Hewson,
chief market analyst at CMC Markets.
After a stunning recovery from March lows, the STOXX 600 has
struggled to make headway in June as investors weigh the
possibility of a swift return to economic growth against rising
virus cases and the chances of renewed restrictions.
All eyes will turn to Markit's flash PMI numbers for Europe,
slated to be released on Tuesday. The data is expected to show
further improvement in business activity in June.
Lufthansa LHAG.DE dropped 3.2% as the German government
held last-ditch talks with the airline group's biggest
shareholder, who is threatening to block a 9 billion euro ($10
billion) bailout unless its terms are adjusted. Telecom stocks .SXKP were hit as Deutsche Telekom
DTEGn.DE dropped 4.3% in ex-dividend trading.
However, automakers .SXAP , retailers .SXRP and miners
.SXPP gained between 0.2% and 0.7%, limiting losses.
Fiat Chrysler FCHA.MI rose 1.4% after news that the
Italian government was close to unveiling the approval of
guarantees for a 6.3 billion euro ($7 billion) financing.

French group Mediawan MDW.PA shot up 41.4% as it announced
the acquisition of Lagardere Studios LAGA.PA valued at around
100 million euros ($112 million) as part of a broader expansion
laid out by its founders.