UPDATE 2-European shares end flat as virus cases rise, logs weekly gains

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* STOXX 600 logs second straight weekly gain
* French PM Castex says no immediate easing of lockdown
* Banking sector surges, outperforms peers for the week
* Quarterly earnings season better than expected - data

(Updates prices throughout, adds comments)
By Shashank Nayar and Shreyashi Sanyal
Nov 13 (Reuters) - European shares ended flat on Friday as
surging coronavirus cases compounded fears of the damage to the
bloc's economy in the coming winter months, although the
benchmark index clocked its second straight week of gains.
The pan-European STOXX 600 .STOXX edged 0.01% higher after
jumping earlier this week on optimism around a working COVID-19
vaccine. The index has gained 12.5% in the past two weeks, also
buoyed by hopes of calmer global trade under U.S.
President-elect Joe Biden.
"Even if the greater likelihood of a vaccine has brightened
prospects for next year, the near-term economic outlook is still
very gloomy," said Jessica Hinds, Europe economist at Capital
Economics.
"Much of the euro-zone is yet again subject to substantial
restrictions on daily life that are taking their toll on
economic activity, particularly in parts of the services
sector."
German Health Minister Jens Spahn said it was too early to
say whether restrictions imposed last week would need to be
extended beyond November, while French Prime Minister Jean
Castex said there would be no easing for at least two weeks.
German shares .GDAXI rose 0.2%, while France's CAC 40
index .FCHI gained 0.3% after having risen to an eight-month
high earlier this week.
Despite rallying more than 40% since a coronavirus-driven
crash in March, the STOXX 600 is down about 7% this year on
concerns that the second round of lockdowns would threaten a
nascent economic recovery. The U.S. S&P 500, in contrast, has
risen 9.5% so far in 2020.
With the euro zone likely heading back into recession this
quarter, the European Central Bank has already said it would
provide more stimulus in December. European banking stocks .SX7P outperformed major sectors
by surged 16.5% this week, while travel stocks .SXTP , which
have lost 25% of their value so far this year, ended their
second week higher.
Technology stocks .SX8P , which have tracked a surge in
their U.S. peers as investors gravitate toward sectors that have
seen higher demand in this year's stay-at-home environment,
gained 0.3% on Friday.
In company news, French power group EDF EDF.PA gained 0.4%
as it showed signs of improving performance in the third
quarter, while German property group Deutsche Wohnen DWNG.DE
fell 1% after its third-quarter earnings update. Overall, quarterly results for STOXX 600 companies have been
better than expected, with 68% of the firms that have reported
results so far beating analysts' earnings estimates, according
to Refinitiv data.