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* All but one European sub-indexes trading higher
* Battered banking stocks track rise in U.S. yields
* Global stocks rise on hopes of U.S. stimulus
* Roche jumps after emergency FDA nod for virus test
(Adds comments, details; updates prices)
By Sagarika Jaisinghani
March 13 (Reuters) - European stock markets found some
footing on Friday, after logging their worst day ever as fears
of an economic shock from the coronavirus pandemic were deepened
by the European Central Bank's decision to hold interest rates
steady.
The benchmark STOXX 600 index was up 2.6%,
following a 12% crash on Thursday that erased over $1 trillion
from the value of European firms and plunged global equities
into a bear market.
The battered banking sector was among the early
advancers, tracking a rise in U.S. bond yields, with Commerzbank
and HSBC adding between 2% and 5.3%.
"Markets have got to a point where if you have a six- to
12-month horizon the risk-reward is shifting towards the
upside," said Rupert Thompson, head of research at asset manager
Kingswood.
"The key question now is not 'are we going to have a
short-lived recession in Q1 and Q2'," he said. "The key question
is 'whether the recession lingers on to the second half of the
year'. If that happens, quite possibly markets could fall
somewhat further."
Fears of a global recession intensified on Thursday after
U.S. President Donald Trump shocked investors with a move to
restrict travel from Europe, while the ECB's move to hold off on
interest rate cuts added to panic about a liquidity crunch.
Asian equity markets had looked set to mirror a carnage on
Wall Street in early trading with bourses from Seoul to Jakarta
setting off down-limit circuit breakers, before finding a floor
as hopes turned to a U.S. stimulus package.
Traders are also betting on the U.S. Federal Reserve to cut
rates for a second time this month at its policy meeting next
week.
Gains in Europe were broad-based, with miners and
utilities jumping 5.2% and 4.6%, respectively, while the
energy sector tracked a rise in oil prices.
The travel and leisure sector was the only sub-index
in the red, bringing its total losses for the month to more than
30%.
Swiss diagnostics maker Roche jumped 5.4% after the
U.S. Food and Drug Administration issued emergency authorisation
for a faster coronavirus test made by the company. After six
straight days of declines, the stock was on track for its best
day in more than two years.
German payments company Wirecard soared 12.2% to
the top of the benchmark index after saying a KPMG audit found
no manipulation in its financial statements.
(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Anil D'Silva, Bernard Orr)
