UPDATE 2-European shares jump as positive PMI paints rosier picture

* PMI data points to manufacturing recovery
* STOXX 600 rises for the first time this week
* German shares mark best day in over two months
* Ericsson slips after earnings disappoint

(Updates to close, adds details)
By Ambar Warrick
Jan 24 (Reuters) - European shares rose on Friday, their
first positive session of the week, as better-than-expected
business activity data from the bloc pointed to a likely
recovery in 2020.
The pan-European STOXX 600 .STOXX climbed 0.9%, having
crossed a record high earlier in the day. The index had marked
four straight sessions of declines amid widespread concerns over
a new virus causing economic disruptions in China, one of the
bloc's biggest trading partners.
While the HIS Markit's Euro Zone Composite Flash Purchasing
Managers' Index (PMI) came in slightly below expectations, a
surprise jump in manufacturing activity brewed some optimism
over a return to expansion in 2020.
"With a Phase 1 trade deal in place, additional no car
tariffs for the moment and some certainty about the Brexit
timeline, some of the factors holding back manufacturing output
have improved," ING economists wrote in a note.
"With manufacturing showing early signs of recovery and the
service sector continuing to grow, chances of a recession are
receding further. We are expecting growth to very gradually pick
up over the course of the year."
Utilities .SX6P were among the best performing subindexes,
with German renewables player RWE RWEG.DE leading gains. The
utility firm's chief executive, Rolf Martin Schmitz, flagged his
possible exit next year. Technology stocks .SX8P also rose, with stronger results
from U.S. chipmaker Intel Corp INTC.O bolstering the outlook
for the sector.
Germany's DAX .GDAXI saw its best day in more than two
months after PMI data showed that the country's private sector
gained momentum in January, while a pullback in manufacturing
eased. UK bluechip stocks .FTSE closed higher after PMI data
showed that Britain's services sector returned to growth in
January.
Among individual stocks, Bayer BAYGn.DE was among the
biggest boosts to DAX after a report on a possible out-of-court
settlement of a U.S. jury trial over allegations that its weed
killer Roundup causes cancer. Swedish telecoms equipment group Ericsson ERICb.ST was on
track for its worst day in about six months after it reported a
smaller-than-expected rise in fourth-quarter core earnings.
Nokian Tyres TYRES.HE hit a more than four-year low as the
Finnish tyre maker forecast its 2020 sales and operating result
to significantly decline from a year earlier due to weak
performance in its Russia operations. Shares of French pharma company Ipsen IPN.PA tumbled to
the bottom of the STOXX 600 after it paused dosing in rare bone
diseases drug Palovarotene.