UPDATE 2-Upbeat economic data helps European shares snap 3-day losing run

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* Italy, France see recovery in May industrial output
* Danish brewer Carlsberg gains on key China market rebound
* Worries over rising virus cases limit gains
* GSK falls; U.S. FDA weighs risks of multiple myeloma drug

(Updates to close)
By Sruthi Shankar and Susan Mathew
July 10 (Reuters) - European shares rose on Friday after
upbeat industrial output data from Italy and France raised hopes
of an economic recovery, even as a spike in coronavirus cases
around the world kept gains in check.
Breaking a three-day losing streak, the pan-European STOXX
600 .STOXX closed up 0.9%, with Italian shares .FTMIB
leading with a 1.3% jump.
Milan stocks were boosted by Italy reporting a rise in
production of 42.1% in May from the month before, almost double
of what economists were predicting, with the economy minister
forecasting further gains in June and July. "The last batch of hard data is somewhat comforting," said
Paolo Pizzoli, senior economist, EMU, Italy, Greece at ING.
"Both production and retail sales data for May have shown
that reopening after the strict lockdown was quick. This should,
in principle, reduce the risk of an extreme GDP contraction in
the second quarter."
However, he warned that as most of the reopening in the
manufacturing domain was completed in May, June data will have
limited room for a rise in production.
France's CAC 40 .FCHI rose for the first time in four
sessions, as production at French factories, mines and
water-treatment plants jumped an unprecedented 19.6% in May.
The STOXX 600 rose just 0.4% this week weighed by fears of
more business shutdowns, particularly in the United States, as
the country registered the largest single-day increase in new
COVID-19 infections globally for the second day in a row on
Thursday. Investors are awaiting the second-quarter earnings season
next week to gauge the economic damage wreaked by the crisis.
Analysts are expecting a 53.9% fall in profit for STOXX
600-listed companies.
Focus is also on a European Central Bank meeting and a
European Union summit next week, with hopes running high that a
750 billion euro ($851.70 billion) coronavirus recovery fund
will be approved by the member states.
Banks .SX7P , auto stocks .SXAP and food & beverage
.SX3P companies were among the biggest gainers on the day.
Danish brewer Carlsberg CARLb.CO rose 6.4% after it said
its expects a smaller-than-forecast drop in first-half profit as
its main China market had rebounded strongly during the second
quarter. The healthcare index .SXDP declined as GlaxoSmithKline
GSK.L lost 1.1% after the U.S. Food and Drug Administration
said on Friday it was unclear whether the benefits of GSK's
experimental treatment for multiple myeloma outweigh the risks
ahead of a review of a side-effect which affects the eyes.