* STOXX 600 marks worst week since 2008
* Stocks pare most gains after Spain emergency
* Oil and gas stocks mark worst week ever
* Airlines seeking govt aid to stay afloat
(Updates to close)
By Ambar Warrick
March 13 (Reuters) - European stocks snapped a six-day
losing streak on Friday, but made only a small gain over the
course of the day as an initial rebound ran out of steam as the
coronavirus sowed further economic turmoil.
The region's stocks, which were earlier set for their best
day since late-2008, swiftly pared gains after Spain declared a
state of emergency over the outbreak, while reports that the
United States would follow suit added to the pain. The benchmark STOXX 600 index .STOXX closed up 1%,
following a record 11.5% crash on Thursday. The index was down
18% for the week, its worst weekly drop since the 2008 financial
crisis.
"These measures that governments are putting into place are
just restrictions to movement - these are necessary measures,
but nevertheless, they will have a significant economic impact,
which the market is still coming to terms with," said Andrea
Cicione, head of strategy at TS Lombard in London.
The STOXX 600, which sank into bear territory this week, has
lost nearly a third of its value from a peak hit in
mid-February.
The week, which started with a shock crash in oil prices,
followed by increasing signs of disruptions caused by the virus,
saw selling pressure break through even the stimulus measures by
several major banks.
Spanish stocks .IBEX ended higher for the day as the
bank-heavy IBEX was supported by higher euro zone bond yields.
The index bounced back from a near eight-year low. GVD/EUR
Italian stocks .FTMIB , which have been among the hardest
hit as the country has been the worst-affected in Europe by the
coronavirus outbreak, closed up 7%, recovering from a more than
seven-year low.
Among the euro zone sub-sectors, resource stocks .SXPP
were the best performers for the day, bouncing back from a
four-year low. Mining heavyweights Evraz EVRE.L and BHP Group
BHPB.L gained more than 12% each.
Swiss diagnostics maker Roche ROG.S rose 3.2% after the
U.S. Food and Drug Administration issued emergency authorisation
for a faster coronavirus test made by the company. Oil and gas stocks .SXEP were the worst weekly performers.
They fell almost 30% in their worst week ever in the wake of the
oil price crash.
Travel and leisure stocks .SXTP , which are have also come
under immense pressure from the outbreak, shed 25.1% for the
week. The sub-index also ended lower for the day, with British
cinema operator Cineworld CINE.L sinking 30% amid continued
concerns over the impact of the outbreak on its business.
Airlines stocks have been particularly hit by the virus
curbing movement, with U.S. travel restrictions on Europe adding
further pressure. Some airlines are seeking government aid to
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