UPDATE 3-BoE boosts European stocks but recession fears remain

* Stocks mark late-session gains on BoE move
* Telecom stocks among top gainers, Jefferies sees potential
* UK's mid-cap index sinks as London braces for lockdown
* Irish lender AI bottoms out STOXX 600

(Updates to close)
By Ambar Warrick and Sagarika Jaisinghani
March 19 (Reuters) - European shares ended higher on
Thursday after more emergency stimulus from the Bank of England,
although questions remained over whether it would suffice to
dampen the economic shock from the coronaries outbreak.
London stocks .FTSE closed slightly up after the BoE cut
interest rates to 0.1% and ramped up its bond-buying. The move
followed emergency measures from the European Central Bank
earlier on Thursday.
The pan-European STOXX 600 index .STOXX ended 2.9% higher,
although the day's gains were a fraction of the losses incurred
over a month-long selling spree. The index has lost more than a
third of its value since a record peak hit last month.
"Ultimately none of this will, unfortunately, stop a UK
recession, which like most of the developed world, now looks
inevitable," wrote James Smith, developed markets economist at
ING, and Petra Krpata, chief EMEA FX and IR strategist at ING,
referring to the BoE's move and the stimulus package.
"But the hope is that many of these measures can help limit
the increase in unemployment, and foster a swifter and smoother
recovery when the virus-shutdowns have passed."
Telecom stocks .SXKP were among the best performing
sectors for the day, rising about 4.7% with Jefferies saying
that certain facets of the sector could benefit from the
outbreak. Energy stocks .STEP jumped more than 3% from a 24-year
low, tracking gains in oil prices. However, a price war between
major producers and weakening demand due to strain from the
outbreak has seen prices wallowing at multi-year lows. O/R
The STOXX 600 had dropped earlier in the day, as the ECB's
measures received a lukewarm reception from markets.
"The stimulus package didn't provide much cheer as there is
still a perception the health will get worse before it gets
better - traders are mindful that we have yet to see the peak of
the crisis," said David Madden, Market Analyst at CM Markets in
London.
The resources sector .SXPP was among the few sectors in
the red for the day, as heavyweight London-listed miners were
slightly pressured by strength in the pound.
The UK's mid-cap FTSE 250 index .FTC dropped 1.4% as
London braced for a virtual shutdown because of the rapid spread
of the virus. .L
Among individual movers, German pharmaceutical maker Bayer
AG BAYGn.DE ended 3.6% higher as it collaborated with the U.S.
government on the coronaries outbreak.
Irish lender AI Group AIBG.I bottomed out the STOXX 600,
dropping about 24% as Ireland's five retail banks agreed to
implement a loan repayment break of up to three months for those
affected by the spread of coronaries.