UPDATE 3-European stocks close near 2-week high as PMI data brings cheer

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* Euro zone downturn eases further in June - PMI data
* White House assures U.S.-China trade deal still intact
* Bayer gains after reports of nearing glyphosate settlement

(Updates to market close)
By Sruthi Shankar
June 23 (Reuters) - European shares closed at their highest
in almost two weeks on Tuesday, powered by cyclical stocks,
following signs that business activity in the continent was
rebounding faster than expected from a coronavirus-driven slump.
The pan-European STOXX 600 index .STOXX ended 1.3% higher,
with economically sensitive sectors such as banks .SX7P ,
automakers .SXAP , miners .SXPP and insurers .SXIP gaining
between 1.9% and 3.3%.
Euro zone stocks .STOXXE rose 1.6% after IHS Markit's
Purchasing Managers' Index (PMI) showed a historic
coronavirus-induced downturn in the bloc had eased again in June
as businesses reopened after weeks of lockdown. The index recovered more than expected to 47.5 from May's
31.9, after touching a record low of 13.6 in April. Germany's DAX .GDAXI jumped 2.1%, France's CAC 40 .FCHI
rose 1.4% and the UK's FTSE 100 .FTSE rose 1.2% after
better-than-expected readings from Europe's largest economies.
"It would no longer surprise me if the data is a surprise on
the upside," said Daniel McDonagh, head of European portfolio
management team at Pyrford International, part of BMO Global
Asset Management.
"The big question still is whether we can proceed on the
exit strategy from the lockdown in a smooth manner and really
avoid a step backwards."
Investors also took relief as White House trade adviser
Peter Navarro walked back from his earlier remarks that the
Phase One trade deal with China was "over" and U.S. President
Donald Trump confirmed in a tweet the trade deal was fully
intact.
BlackRock's Investment Institute said it was "warming up" to
European assets following what it called the eurozone's
"impressive" efforts to tackle the coronavirus, and is
considering an upgrade to European equities. Trillions of dollars in stimulus from central banks and
governments have helped the STOXX 600 recover nearly 37% from
March lows, although the pace of recovery has slowed in June
amid worries over a fresh rise in coronavirus cases.
Helping Germany's DAX outperform, Bayer AG BAYGn.DE gained
5.8% after reports that the company is set to reach a settlement
this week with U.S. plaintiffs that claim its glyphosate-based
weedkillers cause cancer. German metals trader Kloeckner & Co KCOGn.DE jumped 17.5%
after it provided positive earnings outlook for the second
quarter.
Payments company Wirecard WDIG.DE , mired in an accounting
scandal, bounced 18.8% after shedding more than 140% in the past
three sessions.
UK-listed drugmaker Hikma Pharmaceuticals HIK.L fell 5.6%
after a major shareholder sold most of its nearly 1 billion
pound stake.