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CORRECTED-UPDATE 2-European shares rise amid Brexit tussle as focus shifts to earnings

By Sruthi Shankar

(Corrects story filed on Monday, saying name of the firm in paragraph 5 is "Kingswood Group" not "Henderson Rowe")

* Britain's Boris Johnson to push for Brexit deal vote

* Germany outperforms with help from SAP, Wirecard

* Defensive shares among decliners; miners, banks lead gains

By Sruthi Shankar

Oct 21 (Reuters) - European shares broke a three-day run of losses on Monday, as investors stuck to hopes that Britain will avoid a disorderly exit from the European Union, while positive corporate updates and comments on U.S.-China trade talks added to the upbeat mood.

The pan-European STOXX 600 index ended the session 0.6% higher, barely budging on news House of Commons speaker John Bercow refused to allow a vote on Prime Minister Boris Johnson's Brexit divorce deal, saying the same issue had been discussed on Saturday.

A spokesman said the government would now introduce Brexit legislation this week. Lawmakers on Saturday forced the British government to seek a delay to the Oct. 31 deadline, which analysts said reduced the chances of a no-deal Brexit.

London's blue-chip FTSE 100 was up 0.2%, lagging the broader markets due to a strong pound, while the FTSE mid-cap index of domestically focused stocks closed up 0.4%.

"The chances of a deal one way or the other are higher than they were two weeks ago, which is why the market is not falling back," said Rupert Thompson, head of research at Kingswood Group.

"The way it would be, we're more than half way through if you actually saw the deal being approved by the Parliament."

Germany's GDAXI jumped 0.9%, leading gains among major regional indexes.

Business software group SAP's shares gained 2.5% after saying it had reached a three-year deal with Microsoft to help its enterprise customers move their business processes into the cloud. The company also reiterated its forecast for the year and through to 2023.


DEFENSIVE SECTORS

German payments company Wirecard jumped 6% on news the firm was hiring KPMG to conduct an independent audit to address allegations in the Financial Times that its finance team had sought to inflate its reported sales and profits.

Most sub-sectors were in the black, led by miners and banks, but defensive sectors including healthcare and real estate lagged the broader market.

Aiding sentiment, a White House official said that U.S. tariffs scheduled for December on Chinese goods could be withdrawn if negotiations continue to go well.

Investors will be scanning third-quarter report cards from European firms to assess their health amid lingering Brexit and trade uncertainties. UK-listed RBS and Barclays are scheduled to report this week, kicking off bank earnings.

Companies listed in STOXX 600 are expected to report a 3.7% drop in third-quarter earnings, worse than the 3% fall expected a week ago, according to Refinitiv IBES data.

However, early reports were positive, with shares of Swedish engineering firm Atlas Copco jumping nearly 10% to the top of STOXX 600 after it reported forecast-beating third-quarter earnings and order bookings on strong demand from chipmakers.

By contrast Smith+Nephew sank 9% after the medical device maker said its Chief Executive Namal Nawana was stepping down after just 17 months in the role.

Meanwhile, the Berlin government's move to freeze rents put real estate companies such as Deutsche Wohnen, Ado Properties and Vonovia under pressure. Their shares fell between 1% and 2.6%. (Reporting by Sruthi Shankar and Agamoni Ghosh in Bengaluru Editing by David Holmes)