UPDATE 2-European shares rise after last week's 3% slide

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* STOXX 600 up 0.7% after losing 3% last week
* Bayer rises after Roundup lawsuit delay
* German industrial orders drop in August
* Osram drops after AMS fails takeover bid

(Adds new quotes, updates prices)
By Susan Mathew
Oct 7 (Reuters) - European shares rose on Monday, after
their steepest weekly loss in two months, as bids in defensive
shares outweighed nervousness ahead of crucial U.S.-China trade
talks and Brexit negotiations.
The food and beverage sector .SX3P was among the top
gainers, while Bayer's BAYGn.DE 1.4% rise helped the
healthcare index .SXDP climb 0.9%.
Bayer's gain, which also lifted peers in the chemical sector
.SX4P , was spurred by the company saying a pending U.S.
lawsuit over claims related to glyphosate-based herbicide
Roundup has been delayed until further notice. Tracking a rise in oil prices, energy stocks .SXEP were
also among the biggest sectoral gainers on the day. O/R
The pan-European STOXX 600 index .STOXX closed up 0.7%,
after it tumbled 3% last week on tensions over a possible
transatlantic trade war and a spate of weak U.S. and European
data.
Germany's DAX .GDAXI erased early losses to end 0.7%
higher, while Spain's IBEX .IBEX rose almost 1%.
"The rather weak macro data last week has increased
expectations of further interest rate cuts, especially in the
U.S... and are supporting equity markets," said Ingo Schachel,
head of equity research at Commerzbank. The inflow of poor economic prints continued on Monday, as
data showed German industrial orders in August fell slightly
more than expected, underscoring concerns of a recession in
Europe's largest economy. Market participants were also watching for higher-level
China-U.S. trade talks set to begin on Thursday. A report said
that Chinese officials are increasingly reluctant to agree to a
broad trade deal with the United States. "Markets are going to be bit more reluctant to position
strongly ahead of trade talks than on previous similar
occasions, given that hopes of a quick agreement have
disappointed a few times," Schachel said.
Among individual stocks, Austria's AMS AMS.S slipped 0.9%
after the company said it failed in its 4.5 billion euro ($4.9
billion) takeover attempt of German lighting group Osram
OSRn.DE . Osram was down 3.3%. French video game maker Ubisoft UBIP.PA dropped 5.5% to
the bottom of STOXX 600 on weak reviews of its newly launched
game, Ghost Recon. Chemicals giant BASF BASFn.DE rose 1.3%. The firm said it
would invest 20 million euros in Quantafeul, a specialist for
pyrolysis of mixed plastic waste and purification of pyrolysis
oil. Investors will also be looking at developments around the
crucial talks between London and Brussels this week on the
Brexit withdrawal deal, with a looming make-or-break Brexit
summit on Oct. 17 and 18, and the Britain's EU departure set for
Oct. 31.