UPDATE 2-European shares end best week since 2018 on weak footing

* Coronavirus death toll in China reaches 636
* Burberry flags slip in sales due to virus
* Novo Nordisk, Umicore fall after results
* L'Oreal, Yara gain on upbeat profit reports

(Updates with closing price, changes comment)
By Sruthi Shankar
Feb 7 (Reuters) - European shares retreated from record
highs on Friday, as underwhelming earnings reports and concerns
about the economic damage from the coronavirus outbreak halted a
stellar run in stocks this week.
The pan-European STOXX 600 index .STOXX fell 0.26%,
snapping a four-day winning streak, as the number of deaths from
the flu-like virus climbed to 636 and several more companies
suspended operations in the country. Burberry Group Plc BRBY.L said the outbreak was hitting
luxury demand in China and Hong Kong, a key market for the
British fashion brand. Its shares fell marginally. China-exposed sectors such as basic materials .SXPP ,
luxury and auto stocks .SXAP , which have seesawed over the
past two weeks on virus fears, were the biggest decliners on the
day. MET/L O/R
However, Friday's losses did little to deter the STOXX 600
from recording its best weekly gain since November 2018 as
China's attempts earlier this week to limit the fallout of the
outbreak reassured investors.
"Having already rallied hard this week, it was going to be
hard to push equities higher into the weekend, especially given
the uncertainty surrounding the coronavirus in China," Chris
Beauchamp, chief market analyst at IG, wrote in a note.
After spending much of the session in the red, Swiss lender
Credit Suisse Group AG CSGN.S ended 0.2% higher after Chief
Executive Tidjane Thiam quit following a spying scandal that has
hit the reputation of the Swiss bank. Miner Norsk Hydro ASA NHY.OL tumbled 12% after missing
quarterly profit estimates, while Belgian materials and
recycling group Umicore SA UMI.BR fell about 10% after an
earnings miss at one of its key divisions.
Economic data from the bloc this week had raised hopes that
a slowdown may be bottoming out, but latest numbers showed
German industrial output registered its biggest drop in more
than a decade in December. "The data has raised the risk that next week's GDP data
could bring back the R-word for the German economy," said
Carsten Brzeski, chief economist, Germany at ING, referring to
fears of a recession.
Among the bright spots, cosmetics maker L'Oreal SA OREP.PA
hit a record high and fertiliser maker Yara International ASA
YAR.OL rose 5.3% after posting better-than-expected quarterly
profit. Shares in Finland's Nokia NOKIA.HE and Sweden's Ericsson
ERICb.ST rose about 6% each after U.S. Attorney General
William Barr said the U.S. and its allies should consider taking
a "controlling stake" in the European companies to counter
China-based Huawei's dominance in 5G wireless technology.