UPDATE 2-Fears over China coronavirus wallop European shares

* China-exposed resources sector leads losses
* Travel and leisure stocks down on fears of disruptions
* Auto stocks extend losses after U.S. tariff threat
* Novozymes tops STOXX 600

(Updates to close)
By Ambar Warrick
Jan 23 (Reuters) - European shares fell for a fourth
straight session on Thursday as worries over the spread of a new
coronavirus in China created uncertainty over the potential
economic fallout.
The pan-European STOXX 600 .STOXX index dropped 0.7%, its
worst session so far this year, with China-exposed mining stocks
as well as airlines, hotels and luxury goods makers posting
steep losses.
Euro zone banks .SX7E also fell about 0.5% after European
Central Bank President Christine Lagarde struck a slightly more
dovish tone than some had expected in the bank's first policy
meeting of the year. The bank kept rates steady and launched a
strategic policy review. The coronavirus outbreak has killed 18 people and infected
more than 630. China, one of the euro zone's biggest trading
partners, has put millions of people on lockdown in two cities
at the epicentre of the outbreak. Concerns over the virus affecting industrial production in
China undercut major European resource exporters, with the basic
resources sub-index .SXPP enduring its worst day in more than
three months.
However, analysts have raised doubts over the long-term
economic impact of the virus, citing a quick bounce-back in
markets after fears over the SARS epidemic in 2003 had initially
spurred a sell-off.
"It's certainly causing elevated concerns at the moment,"
said Brian Beitner, managing partner at Chautauqua Capital
Management. "At this point, we do not anticipate that the
coronavirus will be as devastating as SARS was."
Haicheng Li, a partner at Chautauqua, added: "The country
has learnt a lesson from previous times, and they have adopted
pretty drastic measures (to address the virus)."
Travel and leisure stocks .SXTP hit their lowest since
mid-December as the virus threatened to cause disruption ahead
of a big Chinese holiday, the Lunar New Year.
Auto stocks .SXAP hit fresh three-month lows after U.S.
President Donald Trump threatened to impose high tariffs on
imports of cars from the European Union if the bloc did not
agree to a trade deal. Bucking the trend, shares of Danish enzymes maker Novozymes
NZYMb.CO and Apple-supplier STMicroelectronics STM.PA led
gains on the STOXX 600 after clocking strong quarterly results.
Utility stocks .SX6P also benefited from some defensive
buying.
Meanwhile, the euro fell and German bond yields dropped
after the ECB meeting.