UPDATE 2-European shares end week on dour note as trade woes linger

* Traders nervous about China's response to U.S. HK law
* Trade-sensitive autos, miners lead declines
* German shares shrug off upbeat unemployment data
* Norway's DNB slips after police investigation
* Britain's Ocado logs best day since February

(Updates to close)
By Sagarika Jaisinghani and Shreyashi Sanyal
Nov 29 (Reuters) - European shares ended the week with their
worst day this month as a clutch of fairly upbeat economic data
on Friday failed to assuage investor concerns about a setback in
Sino-U.S. trade talks after China's rebuke over a U.S. law on
Hong Kong.
The pan-European STOXX 600 index .STOXX fell 0.4%, but
still posted its biggest weekly gain in three on a boost from
positive trade headlines in earlier sessions.
Trade-sensitive miners .SXPP and auto parts makers .SXAP
shed more than 1% each on Friday, while export-laden Frankfurt
shares dipped 0.1% even as unemployment in Germany - Europe's
powerhouse - unexpectedly declined in November. Investors also shrugged off data showing euro zone inflation
accelerated faster than expected in November, as analysts warned
the figures were unlikely to suggest that a wider economic
downturn in the trading bloc was bottoming out.
"We shouldn't get carried away," said Jack Allen-Reynolds,
senior economist at Capital Economics.
"One-off factors have caused services inflation to spike in
the past before falling back again. And other data released this
morning suggest that wage pressures - one of the main drivers of
services inflation - are easing."
European shares crawled toward a record high earlier this
week on signs of progress in U.S.-China trade negotiations, but
sentiment dulled on Thursday as a U.S. law backing pro-democracy
protesters in Hong Kong drew a warning of "firm counter
measures" from Beijing.
"This Hong Kong bill is a different dimension to the trade
angle and it could potentially cause some very serious damage to
the trading relations between the United States and China," said
David Madden, analyst at CMC Markets.
Traders had earlier expected an initial trade agreement to
be signed by mid-November. In the absence of a deal, U.S.
tariffs are due to take effect on Chinese imports on Dec. 15.
In corporate news, Norway's largest bank DNB DNB.OL fell
6% to its lowest level in more than a month after police said
they were investigating whether any laws were broken in its
handling of payments from an Icelandic fisheries firm to
Namibia. DNB has denied wrongdoing and said it is
cooperating with the Norwegian police investigation.
The stock closed at the bottom of the STOXX 600 index in its
busiest day in three years.
In a bright spot, British online grocer Ocado OCDO.L
jumped 10% in its best day since February, as the company signed
its first deal in Asia with Japan's Aeon 8267.T .