UPDATE 2-European shares run red on Fed's reality check, second-wave virus fears

* STOXX 600 marks worst day since late-March
* Automobile stocks lead declines
* Cineworld bottoms out STOXX 600
* Lufthansa slumps after job loss warning

(Adds details, graphic, updates to close)
By Sruthi Shankar and Ambar Warrick
June 11 (Reuters) - European shares suffered their worst day
in more than 11 weeks on Thursday after a sobering economic
outlook from the U.S. Federal Reserve and worries of a second
wave of COVID-19 cases.
The pan-European STOXX 600 .STOXX fell 4.1%, its fourth
straight daily fall, with automobile stocks .SXAP leading
losses.
Fiat Chrysler FCHA.MI fell 7.7% and Peugeot maker PSA
PEUP.PA 10% after a report that the carmakers will face a
lengthy EU antitrust probe over their planned $50 billion
merger. Renault RENA.PA fell 14.1% after its chairman said
nationalisation was not being contemplated. The carmaker
recently obtained a 5 billion euro ($5.7 billion) loan, backed
by the French state. The STOXX 600 came further off three-month highs after the
Fed indicated that it would take more than just the easing of
coronavirus-related curbs for a full-fledged economic recovery,
undermining optimism that has buoying markets recently.

The central bank also forecast a 6.5% contraction in the
world's largest economy for 2020.
The possibility of a fresh rise in U.S. cases also upset
hopes for a smooth easing of coronavirus curbs, with a Reuters
analysis showing confirmed infections had risen slightly after
five weeks of declines, partly due to more testing. "Government, companies and people would be better prepared
for second wave than for the first one," said Roland Kaloyan,
European equity strategist, Societe Generale.
"But the problem is there is a limit to the governments
injecting money. They're using all the resources now for a
V-shaped recovery."
Travel and leisure stocks .SXTP were pressured by the
prospect of new infections, with British cinema operator
Cineworld CINE.L the biggest loser on the STOXX 600,
plummeting 17.1%.
Lufthansa LHAG.DE slumped 9.1% after admitting that the
positions of up to 26,000 employees are surplus to requirements,
suggesting many more jobs will be cut at the German carrier.
European stocks also extended losses late in the session
after Wall Street indexes opened substantially weaker, with the
S&P 500 .SPX falling 3%. .N
Consumer goods giant Unilever 's UK-listed shares ULVR.L
UNc.AS fell nearly 1% after it proposed to combine its Dutch
and British legal entities in a single holding company based in
Britain. European healthcare stocks .SXDP declined the least,
indicating that defensive plays were coming back into the
market.

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