European shares up for third straight session as Wire Card, Bouygues gain

* STOXX 600 up 0.1 pct

* Wirecard (LSE: 0O8X.L - news) , Bouygues (LSE: 0HAN.L - news) rise after results

* Bayer (LSE: 0P6S.L - news) falls after notes placement

* Relfationary trade loses steam, defensives up (Recasts, adds detail and quotes, updates prices)

By Kit Rees

LONDON, Nov 16 (Reuters) - European shares edged higher Wednesday, supported by a rally in commodities-related stocks along with gains among Germany's Wirecard and France's Bouygues (Swiss: 487662.SW - news) after reporting results.

The STOXX 600 index climbed 0.1 percent, on track for its third straight session of gains.

Among the top risers, German payment processor Wirecard (Swiss: WDI.SW - news) rose 5.3 percent after issuing guidance for 2017, while France's Bouygues also rose 4 percent after maintaining its outlook following a forecast-beating rise in third quarter operating profit.

B&M European Value Retail (Other OTC: BMRPF - news) 's shares also rose 4.7 percent after a broker upgrade.

"We believe B&M's 33% share price fall since peak provides a buying opportunity. We think B&M is well positioned for a tough UK consumer environment," analysts at Jefferies said in a note, upgrading their rating on the stock to "buy".

A 5 percent fall in Bayer, however, weighed on the chemicals sector which dropped 1 percent and was the worst-performing European sector.

The drugmaker fell after a placement of 4 billion euros of mandatory convertible notes.

Among the biggest fallers, shares in Ocado dropped more than 6 percent with analysts citing pressure from grocer Morrison's extension of its Amazon deal to offer a new same-day grocery delivery service to Amazon Prime customers.

Hugo Boss (LSE: 0Q8F.L - news) ' shares also declined, dropping 5.7 percent after its new CEO said that the fashion house should return to growth in 2018, with plans to simplify the brand portfolio.

While the basic resources index and oil stocks gained, investors favoured more defensive sectors, such as telecoms and utilities, gaining 0.8 percent and 0.3 percent respectively as the reflationary trade continued to lose steam.

Since Donald Trump won the U.S. presidential election, investors had been betting on potential beneficiaries from his plans to boost spending on infrastructure and deregulate the banking sector.

These hopes have boosted shares in miners, construction companies and banking stocks. Analysts, however, cited the upcoming Italian referendum and elections in Europe next year as reasons to be cautious.

"I think markets are perhaps already ... moving on to the other political risk we're facing," Mike van Dulken, head of research at Accendo Markets, said.

"You can't really take on any more risk on the hope that a populist vote will still lead to policy that will deliver growth, which would be good, because we don't know if we're there yet." (Reporting by Kit Rees; Editing by Jon Boyle)