UPDATE 2-European shares recover from viral outbreak fuelled sell-off

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* STOXX 600 ends up 0.8% after Monday's 2.3% slide
* Swedbank , Virgin Money UK rally after results
* SAP falls as inline quarter fails to impress
* Phillips slips following sales miss

(Updates to close)
By Susan Mathew and Medha Singh
Jan 28 (Reuters) - Banks and luxury goods led a recovery in
European shares on Tuesday after heightened concerns about the
about the potential impact on businesses from the coronavirus
outbreak in China saw the main index post its worst day in about
four months.
Upbeat earnings pushed lender Swedbank SWEDa.ST to the top
of the pan-region STOXX 600 index .STOXX , while Virgin Money
UK VMUK.L rallied on reporting higher loan book growth.
Marking its best day in almost a month was Italy's
lender-heavy index .FTMIB , jumping 2.6% to lead regional peers
as its banks index .FTIT8300 rallied 2.5%.
Luxury goods makers LVMH LVMH.PA Burberry Group Plc
BRBY.L , Kering PRTP.PA and Moncler SpA MONC.MI , which
derive a chunk of their demand from China, rose after sliding
more than 3% on Monday.
Bolstered also by a recovery on Wall Street, the STOXX 600
ended up 0.8%. Along with most other major country indices,
STOXX 600 had lost more than 2% on Monday which had wiped out
around 200 billion euros of market capitalisation. .N
Even as the death toll from the outbreak rose to 106,
President Xi Jinping said the country was sure of defeating a
"devil" virus. In Europe, Germany confirmed its first case of
the virus after a 33-year-old man contracted it from a colleague
visiting his workplace from Shanghai. "Yesterday was just panic selling and then today there is
this realization that things are getting worse but they don't
seem to be getting exponentially worse," said David Madden, a
market analyst at CMC Markets UK in London.
But he noted that stock markets have only regained some of
the ground they lost on Monday, which could be attributed to
traders looking for some short-term bargain hunting and
short-covering.
Capping gains were shares of Europe's most valuable
technology company SAP SAPG.DE , which dropped 2.1% as some
analysts pointed to the company's slowing cloud revenue growth.
Philips PHG.AS slipped 2.1% after the Dutch health
technology company's quarterly sales fell short of estimates.
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As the week progresses, investors anticipate central bank
meetings with the Federal Reserve's decision on interest rates
due on Wednesday and the Bank of England's policy stance
expected on Thursday. Financial markets see a nearly 60% chance
of a rate cut in Britain. BOEWATCH
Britain is also set to formally leave from the European
Union on Friday, followed by a "business as usual" transition
that ends next December. The two sides will also start trade
talks in the coming days.