UPDATE 2-European stocks end higher on support from oil, utilities

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* STOXX 600 up 0.8%
* Continental drops after downbeat 2021 outlook
* Pandora reports organic sales growth in February

(Adds comments, updates prices throughout)
By Sruthi Shankar and Shreyashi Sanyal
March 9 (Reuters) - European stocks ended Tuesday decidedly
higher after extending gains from their best session in four
months a day earlier, as a rise in shares of oil and utility
companies helped counter losses in miners.
The pan-European STOXX 600 .STOXX rose 0.8%, with the
utility sector .SX6P rising more than 1.5%.
Danish jewellery maker Pandora A/S PNDORA.CO jumped 7.2%
after reporting a 12% rise in organic sales in February.
The continent's stock markets have come under pressure as a
jump in bond yields on the back of quick vaccine rollouts and a
massive U.S. coronavirus relief package have fanned worries
about a potential rise in inflation.
Still, major European indexes have fared better than some of
their tech-heavy U.S. peers.
"European market is much less tech-heavy than the S&P 500,
much less growth-dominated, so higher bond yields are not such a
negative," said Nick Nelson, head of European equity strategy at
UBS.
"The speed of the move has been an issue ... if we're
talking about a gentle rise in yields from here on, then that's
more manageable, and more cyclical parts of the market such as
Europe would do better."
The MSCI Europe value index .MIEU0000VPEU , which includes
banking, energy and auto stocks, have risen about 9% so far this
year, while its growth counterpart .MIEU0000GPEU that tracks
tech and healthcare stocks is up 2%.
Miners .SXPP fell 1.8% as Dalian iron ore futures tumbled
by the 10% daily limit on anti-pollution restrictions in China's
top steelmaking city of Tangshan, while metal prices were also
hit by a firm dollar. IRONORE/ MET/L
UK-listed miners Rio Tinto RIO.L , BHP Group BHPB.L and
Anglo American AAL.L fell between 2.4% and 4.4%, weighing on
the commodity-heavy FTSE 100 .FTSE .
Investors will closely watch a European Central Bank meeting
later this week to see if policymakers have decided to step up
the pace of emergency bond purchases to calm skittish markets.
"For the ECB, this will provide a challenging environment,
with policymakers in Frankfurt both unwilling and unable to
match the Federal Reserve's dovishness," said Stephen Innes,
chief global market strategist at Axi.
Meanwhile, data showed German exports unexpectedly rose in
January buoyed by robust trade with China. A more
comprehensive revised reading on euro zone's fourth-quarter GDP
data is due at 10 a.m GMT.
Among other stocks, British insurer and asset manager M&G
Plc MNG.L gained 4.7% after it posted better-than expected
2020 operating profit in its first full year as a standalone
company.
German automotive parts maker Continental AG CONG.DE fell
8.0% after it forecast 2021 outlook below expectations.