UPDATE 2-European shares boosted by earnings, progress on coronavirus treatment

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* STOXX 600 up for third straight session
* China, UK researchers make progress in coronavirus
treatment
* Novo Nordisk , Valmet, Infineon rally after results
* GlaxoSmithKline, Imperial Brands at bottom of STOXX 600
* Airbus slips on halting output at China plant

(Updates to close)
By Susan Mathew
Feb 5 (Reuters) - A clutch of upbeat earnings and reports of
progress in treatment for the fast-spreading coronavirus helped
to push European shares towards record highs on Wednesday.
Drugmaker Novo Nordisk NOVOb.CO rose 4.6% and industrial
company Valmet VALMT.HE and chipmaker Infineon IFXGn.DE both
surged more than 10% after results, taking the pan-European
stock benchmark STOXX 600 index up 1.2% in its third day of
gains.
The index is now just 0.3% shy of record highs hit last
month. The rally this week comes after a virus outbreak in China
sent markets into a tailspin as investors gauged the potential
economic damage from production and supply disruptions.
On Wednesday, reports from China and the UK that researchers
are closing in on a vaccine to treat the virus, lifted sentiment
as the death toll in China moved closer to 500. China-exposed sectors such as autos .SXAP , technology
.SX8P and basic materials .SXPP were among the strongest
performers.
"It is driven by what we see around the coronavirus and more
importantly, the reporting season so far has been pretty
reasonable across a number of different sectors," said Will
James, deputy head of European equities at Aberdeen Standard
Investments.
Companies listed on the STOXX 600 are forecast to report
1.2% earnings growth in the fourth quarter, just a touch below
the 1.3% growth rate expected last week, according to the latest
data from I/B/E/S Refinitiv. This would follow three straight
quarters of declining profits. Data showing an acceleration of euro zone business activity
in January, added to the upbeat mood. But tempering the positive expectations was a near 7% drop
in cigarette maker Imperial Brands Plc IMB.L after it forecast
a fall in its first-half profit, while GlaxoSmithKline GSK.L
slipped after missing fourth-quarter earnings forecasts.
Planemaker Airbus AIR.PA fell after the company said it
was prolonging a planned closure of its final assembly plant in
Tianjin, China, as a result of the coronavirus emergency.