UPDATE 4-European shares jump as coronavirus deaths slow, Germany up almost 6%

* STOXX 600 up 3.7% after 1.8% fall last week
* Auto and travel and leisure sectors lead gains
* GVC surges almost 18%, halves estimate for hit to profits
* Europe's stocks volatility gauge slips to one month low
* Analysts expect European earnings recession to deepen in
2020

(Updates to close)
By Susan Mathew and Sagarika Jaisinghani
April 6 (Reuters) - German shares jumped 5.8% on Monday to
lead a strong bounce in European shares as a slowdown in
coronavirus deaths raised hopes that nationwide lockdowns may
gradually be eased.
While all major sectors were well in the black, the travel
and leisure sector .SXTP -- worst hit by the lockdowns --
rallied 8.2% breaking a three-day losing streak, while the
German-focused auto sector .SXAP led gains with its near 9.5%
jump.
Frankfurt's DAX .GDAXI marked its best session in two
weeks, while all other major European bourses closed up between
2.3% and 4.9%.
Italy, which has the highest coronavirus death tally in the
world, reported its lowest daily death toll in more than two
weeks, while in Spain, the pace of new deaths slowed for the
fourth day. France's daily death toll also dropped and
admissions into intensive care slowed. Wall Street stock indexes got a boost after President Donald
Trump expressed hope that the health crisis was "leveling-off"
in some of the hardest-hit U.S. states. .N
"Signs that coronavirus may be peaking in parts of mainland
Europe have given some hope that the economic hit will be
short-lived," said Russ Mould, investment director at AJ Bell.
The volatility gauge for euro-zone stocks .V2TX , widely
known as Europe's fear index, dropped to a one month low of
42.92, nearly halving from its peak of 95.02 in mid-March.
"There still remains a great deal of uncertainty as to how
soon, and to what extent, the lockdowns will be relaxed," warned
Rupert Thompson, chief investment officer at wealth management
group Kingswood.
"While we remain cautious near term, we continue to believe
that equity markets in a year's time should be higher than now,
possibly significantly so," he added.
The pan-European benchmark STOXX 600 index .STOXX also
posted its biggest one-day gain in two weeks, ending 3.7%
higher. It had logged its sixth weekly decline in seven last
week as the health crisis stalled business activity and prompted
firms to suspend dividends and share buybacks.
The STOXX 600 index has lost more than $3 trillion in market
value since February on fears of a global recession despite
extraordinary fiscal and monetary stimulus globally, with
Goldman Sachs predicting a 38.4% slump in euro area real GDP in
the second quarter.
Ladbrokes owner GVC GVC.L surged almost 18% to top the
regional and travel index after it halved its estimate for a
monthly hit to profits from the coronavirus-driven shutdown in
international sports.
But gains for UK's FTSE 100 .FTSE were capped by oil firm
BP PLC BP.L as a delay in an OPEC+ meeting regarding oil
output pressured crude prices.
News that British Prime Minister Boris Johnson was in
hospital due to persistent COVID-19 symptoms also weighed.
O/R