UPDATE 2-European shares up on defensive plays as stimulus hopes laced with caution

* Utilities, telecom sectors lead gains
* Germany's Hellofresh tops STOXX 600
* Italy stocks up as govt considers lockdown measures
* Roche gains as China to use its drug to treat coronavirus

(Updates to close)
By Ambar Warrick and Sruthi Shankar
March 4 (Reuters) - European shares rose on Wednesday, with
defensive sectors gaining the most as investors grappled with
the efficacy of monetary stimulus in offsetting the economic
impact of the coronavirus.
While the Fed's 50 basis points cut on Tuesday did see
markets increasing bets on similar moves from other central
banks, the fact that it was the Fed's first rate cut outside of
a regularly scheduled policymaker meeting since the 2008 crisis
led to heightened concerns over the outbreak. The pan-European STOXX 600 index .STOXX rose 1.4%, with
the utilities .SX6p and telecom .SXKP sectors leading
gains.
Danish wind farm developer Orsted A/S ORSTED.CO surged
more than 5%, leading utilities higher after it upped its annual
core earnings forecast. "Overall investors seem pretty pleased with the stimulus
situation," said Connor Campbell, analyst at financial spread
better Spreadex.
"Still, somewhat cautious because there is still so much
uncertainty over how much central banks over the world have to
work with, and how much these rate cuts will help."
Money markets in the euro zone are pricing a 90% chance that
the ECB will cut its deposit rate, now minus 0.50%, by 10 basis
points next week. ECBWATCH
However, sources told Reuters that policy action was not on
the agenda of an unscheduled telephone conference call held by
ECB policymakers late on Tuesday to discuss their emergency
response to the coronavirus outbreak. Adding to concerns over the virus outbreak, International
Monetary Fund Managing Director Kristalina Georgieva said on
Wednesday that the faster spread of the coronavirus will wipe
out any hope of stronger global growth in 2020. Healthcare stocks .SXDP jumped, with Roche Holding AG
ROG.S gaining more than 3% after Chinese health authorities
said it would use the Swiss pharma giant's arthritis drug to
treat some coronavirus patients in severe conditions.
Italian stocks .FTMIB closed 0.9% higher as the country
prepared drastic new emergency measures to try and slow the
spread of coronavirus in Europe's worst hit country.
German online food delivery company Hellofresh HFGG.DE
jumped 10.7%, topping the STOXX 600 as it extended gains
following strong annual results.
The travel and leisure index .SXTP ended 1.6% lower as
major hotel and airline stocks continued to be battered by
virus-related disruptions hurting demand.
Aviation support services provider Signature Aviation Plc
SIGSI.L sank 6.1% to the bottom of the STOXX 600 after
Barclays and JP Morgan cut the stock's target price.