CORRECTED-UPDATE 2-European shares sink again as Trump imposes travel ban

(Corrects virus reference in third paragraph to 'pandemic' from
'epidemic')
* STOXX 600 hits lowest since mid-2016
* Travel & leisure stocks tumble to over six-year low
* Cineworld faces threat of collapse in revenue
* All eyes on ECB policy meeting later on Thursday

By Sagarika Jaisinghani
March 12 (Reuters) - European shares plummeted to their
lowest in almost four years on Thursday as investors were
rattled by dramatic travel restrictions imposed by U.S.
President Donald Trump in an attempt to halt the fast-spreading
coronavirus.
Trump on Wednesday suspended travel from Europe to the
United States for 30 days, sending a shockwave through financial
markets that pushed U.S. stock markets into bear market
territory. The benchmark STOXX 600 index .STOXX fell 6.3%, extending
declines to a sixth straight day with all but one constituent
trading in the red as the World Health Organisation for the
first time referred to the coronavirus outbreak as a pandemic.
Travel and leisure stocks .SXTP shed 9.9% to hit their
lowest since 2013, with Air France KLM AIRF.PA , Lufthansa
LHAG.DE and British Airways-owner IAG ICAG.L declining
between 11.4% and 13.5%.
The sector has now lost over a quarter of its value this
month as a virtual halt to business travel and holiday
cancellations force airlines to cut back on flights.
"Travel restrictions equal slower global economic activity,
so if you need any more coaxing to sell sell sell after a
massively negative signal from overnight trading in U.S.
markets, it just fell in your lap," said Stephen Innes, global
chief markets strategist at Axicorp.
All eyes will now be on the European Central Bank policy
meeting later in the day, with expectations running high that
the central bank will join its UK, American and Australian peers
in cutting interest rates further.
In an unusual move, the ECB's bank supervision arm, which
generally acts independently of monetary policy, is also
expected to outline ways to help the financial sector.
Analysts question whether the measures will do much to
assuage investors' underlying concerns.
"All these central bank measures cannot solve the problem of
disruption of transportation and production," one German-based
strategist said.
"It certainly helps that we won't see a fiscal crisis last
seen in 2008-2009, but it doesn't really help company earnings."
Joining a growing list of corporate casualties of the
outbreak, WH Smith SMWH.L forecast a 40 million pound ($51.25
million) hit to annual profit, while airport retailer Dufry
DUFN.S said it would cut jobs after posting a 7.3% slump in
organic sales.
Their shares fell 12.9% and 14.7%, respectively.
Cinema operator Cineworld CINE.L , sank 34.1% after it said
that a worst case scenario for the virus outbreak could cast
doubt on its ability to continue as a going concern.
The lone gainer on the STOXX 600, Swiss financial company
Pargesa Holding PARG.S jumped 3.6% after saying its majority
owner plans to take over the entire company.