UPDATE 4-European shares firmly in the red as stimulus hopes fail to hold

* STOXX 600 marks worst close since mid-2013
* Airbus, Rolls Royce hammered as JP Morgan predicts more
pain
* Energy firms pummelled by falling oil prices, at 24-year
low

(Updates to close)
By Ambar Warrick and Sagarika Jaisinghani
March 18 (Reuters) - European shares marked their worst
close in nearly seven years on Wednesday as recent stimulus
measures failed to placate investors seeking to exit equities in
the face of the coronavirus pandemic.
The pan-European STOXX 600 index .STOXX closed down 3.9%,
negating all of Tuesday's gains when a bumper stimulus plan from
the Spanish government had spurred some buying in regional
equities.
The STOXX 600 has lost a quarter of its value in March, and
is set for its worst month ever after the epicentre of the
outbreak shifted from China to Europe.
Oil and gas stocks .SXEP , which are among the worst hit by
the outbreak with to crude prices sinking on lower demand, ended
at their weakest level in 24 years.
London-listed John Wood Group WG.L and Tullow Oil TLW.L
were among the worst performers in the sector, ending about
21.7% and 16.9% lower, respectively.
Industrials .SXNP marked heavy losses amid calls for a $60
billion bailout of the U.S. aerospace industry, with JP Morgan
analysts saying it would take years for the sector to recover.
Given that several European players depend on U.S. demand
for engineering services and parts, a slowdown in U.S.
industrial activity will send ripples across Europe.
Airbus AIR.PA tumbled 22.2% to its lowest since 2016.
France's Safran SAF.PA , which supplies Boeing BA.N , ended
nearly 23% down, while Rolls Royce RR.L dropped about 11%.
"I think we're probably already in a recession. I don't see
any avoiding that on either side of the Atlantic," said Cameron
Brandt, director of research at fund flow data provider EPFR.
Adding to concerns over the virus, European Central Bank
President Christine Lagarde told Europe's heads of government
that lockdowns being imposed to fight the coronavirus epidemic
could easily cause the EU's economy to shrink by 5%, the
Frankfurter Allgemeine reported. "A short recession might not be a bad thing in terms of
bringing valuations to slightly more credible levels and perhaps
letting the air out of some asset bubbles."
Among individual movers reeling from the impact of the
outbreak is cruise operator Carnival PLC CCL.L , which
bottomed out the STOXX 600, plunging 34% as the global tourism
industry saw demand flat-lining.
British IT company Micro Focus International MCRO.L
slumped 22.6% after scrapping its final dividend.
Volkswagen VOWG_p.DE said it would halt production at
three Polish plants, while a handful of British pub and
restaurant operators said they were seeking leeway on debt
arrangements with their banks, due to the UK advising against
social gatherings.