* STOXX 600 at lowest since Jan 2019
* FTSE among worst performers, oil stocks drag
* Weakness on Wall St pressures local markets- Analyst
* Bank stocks among few gainers
(Updates to close)
By Ambar Warrick and Sagarika Jaisinghani
March 11 (Reuters) - European shares ended at a 14-month low
on Wednesday after surrendering initial gains made on the Bank
of England's stimulus measures, while weakness in markets across
the Atlantic also drove losses.
The benchmark STOXX 600 closed down 0.7%, having
turned red after U.S. futures pointed to losses on Wall Street,
indicating that uncertainty over the coronavirus' economic
impact will continue to ravage markets.
Regional stocks had rallied briefly after the BoE
unexpectedly cut rates, joining a cadre of major central banks
in trying to shield their respective economies from the
outbreak. The bank also outlined a massive budget boost to
combat the virus.
Ironically, British stocks were the worst performers
for the day as weakness following a crash in oil prices
continued to hound heavyweights BP PLC and Royal Dutch
Shell, which closed 3.6% and 2.4% lower, respectively.
Worsening fears of the outbreak, the World Health
Organization described the outbreak as a pandemic.
"I think it was very hard for the European indices to
withstand the really negative U.S. open," said Connor Campbell,
analyst at financial spread better Spreadex,
Markets are now awaiting the European Central Bank's policy
meeting on Thursday to see whether the bank will slash rates.
However, the ECB is seen as having little room to cut, given
that EU rates are firmly in negative territory.
"So far, investors have been incredibly hard to please when
it comes to stimulus. Every time its been announced there's been
gains, but they've come alongside a heavy dose of scepticism
over what impact they will have."
Travel and leisure was the worst performing
subindex, with British cinema operator Cineworld
leading losses after RBC downgraded the stock on risks from the
coronavirus.
Airline stocks also plummeted as travel disruptions from the
virus saw investors selling en masse.
Oil and gas stocks ended lower, with markets still
reeling from a crash in prices following Saudi Arabia's price
war against Russia.
G4S, one of the world's largest private security
firms, tumbled 22.6% to the bottom of the STOXX 600 after
posting an annual statutory loss.
Bank stocks were among the few gainers after ECB
President Christine Lagarde was reported as having told EU
leaders in a conference call on Tuesday night that policymakers
were looking at all tools ahead of the meeting, particularly
ones to provide "super-cheap" funding.
German minerals firm K&S jumped 14%, topping the
STOXX 600 after it said it would sell its salt business in North
and South America to slash debt and focus on potash products.
(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Anil D'Silva, Patrick Graham and Angus MacSwan)
BP (BP.)
