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* London stocks extend losses after PM tests positive
* Banks among the worst performers
* Germany's ProSiebenSat.1 Media tops STOXX 600
(Adds details on EU coronavirus funding plan, updates prices)
By Ambar Warrick
March 27 (Reuters) - European shares fell on Friday after EU
lawmakers failed to agree on a coronavirus rescue package, then
sank further on the news that British Prime Minister Boris
Johnson had been infected.
The pan-European STOXX 600 index started the day about 2%
lower, then fell further to trade down 3.7% at 1210 GMT after
the announcement about Johnson's test. The declines followed a
three-day rally and the index was still on course for its best
week since 2011.
EU lawmakers on Thursday extended the deadline for agreeing
on a comprehensive economic rescue package by two weeks over a
dispute between the ailing south and the fiscally conservative
north.
"There was no specific new coordinated action to ramp up the
fiscal response to the crisis and, in particular, no agreement
around 'corona bonds'," Stephen Innes, chief market strategist
at financial services firm AxiCorp, wrote in a note, saying that
markets were disappointed.
While the STOXX 600 has recovered almost 15% from its low on
March 16, it remains more than 26% below its all-time high last
month, a rout that has erased more than $3 trillion from the
value of European firms.
A swathe of bumper stimulus measures from around the globe
had bought about a modicum of stability in equity markets.
However, with the outbreak showing no signs of slowing, risk
assets are likely due for more pain.
London bluechip stocks plumbed new intraday lows,
trading about 4.9% in the red.
After leading the rebound this week, travel and leisure
stocks fell 4.4%, with cruise ship operator Carnival
Corp slumping 11% to the bottom of the index.
The European Parliament on Thursday approved 37 billion
euros ($40.5 billion) worth of emergency funds and measures to
help airlines.
Airline operators Ryanair, Easyjet and
Lufthansa retreated between 3% and 6%.
Banks were among the worst performing sectors,
dropping about 4.6% as the European Banking Federation said they
should halt 2020 dividend payments to preserve capital and
continue to lend until the impact of the coronavirus epidemic is
clearer.
Real estate stocks fell as the UK government urged
people to avoid moving houses.
Shares in ProSiebenSat.1 Media rallied to the top
of the STOXX 600 after it announced in a late-night statement
that Chief Executive Officer Max Conze was leaving with
immediate effect, ending a drama-filled tenure at the German
broadcaster.
(Reporting by Ambar Warrick, Sagarika Jaisinghani in Bengaluru
and Joice Alves in London; editing by Larry King and Andrew
Heavens)
