UPDATE 3-European shares end higher on strong earnings, positive data

* Mining stocks mark third straight week of gains, outpace
peers
* Manufacturing activity strengthens in Feb
* Feb service sector activity hit by lockdowns
* STOXX 600 up 0.2% this week

(Updates to market close)
By Sagarika Jaisinghani and Ambar Warrick
Feb 19 (Reuters) - Euro zone shares rose on Friday, marking
a third week of gains, as data showed factory activity in
February jumped to a three-year high, while upbeat quarterly
earnings boosted confidence in a broader economic recovery.
The euro zone index .STOXXE was up 0.9%, with strong
earnings from companies such as Acciona ANA.MC and Hermes
HRMS.PA brewing some optimism over an eventual economic
recovery. The pan-European STOXX 600 index .STOXX rose 0.5%, as
regional factory activity was seen reaching a three-year high on
strong demand for manufactured goods at home and overseas.
Another reading showed the euro zone's current account
surplus widened in December on a rise in trade surplus and a
narrower deficit in secondary income. Still, the STOXX 600 marked small gains for the week, having
dropped for the past three sessions as investor concern grew
over rising inflation and a rocky COVID-19 vaccine rollout.
But basic resources stocks .SXPP outpaced their peers this
week with a 7% jump, as improving industrial activity across the
globe drove up commodity prices.
"This week's slightly adverse price action has all the
hallmarks of a loss of momentum temporarily and not a structural
turn," said Jeffrey Halley, senior market analyst at OANDA.
"There is not a major central bank in the world thinking
about taking their foot off the monetary spigot, except perhaps
China. (Markets) will remain awash in zero percent central bank
money through all of 2021 (and) a lot of that will head to the
equity market."
Minutes of the European Central Bank's January meeting,
released on Thursday, showed policymakers expressed fresh
concerns over the euro's strength but appeared relaxed over the
recent rise in government bond yields. The bank's relaxed stance was justified by the euro zone
economy requiring continued monetary and fiscal support, as
evidenced by a contraction in the bloc's dominant services
industry in February.
The STOXX 600 has rebounded more than 50% since crashing to
multi-year lows in March 2020, with hopes of a global economic
rebound this year sparking demand for sectors such as energy,
mining, banks and industrial goods.
London's FTSE 100 .FTSE lagged regional bourses on Friday
due to a slump in January retail sales and as the pound jumped
to its highest against the dollar in nearly three years. .L
GBP/
French carmaker Renault RENA.PA tumbled more than 4% after
posting a record annual loss of 8 billion euros ($9.68 billion),
while food group Danone DANO.PA and German insurer Allianz
ALVG.DE rose following upbeat trading forecasts.