UPDATE 2-European shares end higher for first time in three sessions

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* European autos lead gains, banks rise the least
* Healthcare stocks rise with focus on vaccine developments
* German industry output in July marks modest rise
* China's exports rise the most in nearly 1-1/2 years

(Updates prices, adds comments)
By Shreyashi Sanyal
Sept 7 (Reuters) - European shares rose for the first time
in three sessions on Monday, bouncing from a Wall Street-led
rout in technology stocks in the previous week as investors
focused on economic green shoots and COVID-19 vaccine
developments.
Australia expects to receive its first batches of a
potential COVID-19 vaccine in January after a deal was struck
with CSL CSL.AX to manufacture two vaccines, one developed by
rival AstraZeneca AZN.L and Oxford University, and another in
CSL's own labs with the University of Queensland. AstraZeneca jumped 4%, with the European healthcare sector
index .SXDP gaining 2.1%.
Sanofi SASY.PA rose 2.4% after it said a coronavirus
vaccine it is developing with Britain's GlaxoSmithKline GSK.L
was likely to be priced at less than 10 euros. The STOXX 600 index .STOXX was 1.7% higher, with Frankfurt
shares .GDAXI rising 2%.
Autos .SXAP led sectoral gains in Europe after analysts at
JP Morgan said the overall tone for production outlook in the
European autos sector was "upbeat", following their meetings
with industry leaders. Insurers .SXIP and financial services sub-indexes climbed
in early trading, while telecoms .SXKP rose the least,
suggesting a risk-on mood.
The STOXX 600 has remained stuck in a tight range since
June, as a euro zone economic recovery appeared to be losing
steam.
Markets also got a lift from data showed China's exports
rose the most in nearly 1-1/2 years in August in a sign that
more of its trading partners, such as the euro zone, were
reopening their economies. "The Chinese export news helped and the absence of the U.S.,
helped erase some of the bearish sentiment that arose at the end
of last week," said Connor Campbell, analyst at spreadbetter
Spreadex.
U.S. markets were closed on Monday for the Labor Day
holiday.
Data showed German industrial output rose far less than
expected in July, suggesting Europe's largest economy faces a
slow return to production levels that preceded the crisis
unleashed by the coronavirus pandemic. "German industry eked out a meagre increase in production in
July, leaving output still well below its pre-crisis level.
Production is likely to have increased again in August, but we
now seem to be past the period of rapid catch-up growth," said
Jack Allen-Reynolds, senior Europe economist at Capital
Economics.
All major European sector indexes closed higher, with banks
.SX7P rising the least.
Dechra Pharmaceuticals DPH.L jumped 6.9% to a record high
after its profit beat expectations.