UPDATE 2-German shares hit record highs as easing coronavirus fears lift Europe

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* Deutsche Telekom jumps as T-Mobile-Sprint gets approval
* Chinese health adviser says outbreak may be over by April
* STOXX 600 at record, analyst says rally may be premature
* TUI tops STOXX 600 on improved outlook
* NMC tumbles after KKR rules out offer for it

(Updates to close)
By Susan Mathew
Feb 11 (Reuters) - German shares hit a record high on
Tuesday, leading European stocks to a record too amid hopes the
coronavirus outbreak may plateau soon and that the impact on the
global economy might not be significant as feared.
Deutsche Telekom DTEGn.DE jumped nearly 4%, driving the
rally in Frankfurt's DAX .GDAXI , after the telecom giant's
T-Mobile TMUS.O and wireless carrier Sprint S.N got U.S.
approval for a merger initially valued at $26
billion.
Shares in Nordic network equipment makers Nokia NOKIA.HE
and Ericsson ERICb.ST also rallied on news of the U.S.
approval, helping Europe's technology index .SX8P end at its
highest in more than 18 years. The DAX closed up 1% at 13,627.84 with gains across the
board. The pan-European STOXX 600 index .STOXX , which had its
highest opening on Tuesday, powered 0.9% higher during the day
to set a new closing best.
Globally, sentiment was lifted by the slowing number of new
coronavirus cases in China. A top Chinese health adviser's
suggestion that the epidemic may plateau in the next few weeks
and be over by April further fuelled risk appetite, even as the
death toll climbed above 1,000. MKTS/GLOB Markets have seen several volatile weeks following the news
of the virus outbreak as investors worried about the extent of
economic disruption. But the rally feels a little premature, said Craig Erlam, a
senior market analyst at Oanda.
"It's more reflective of investors' desire to not miss out
on the latest rally, which leaves markets vulnerable to any
negative news. Given how rapidly this virus has spread I would
say there is more risk for bad news," he said.
Travel company TUI TUIT.L led gains on the STOXX 600,
rising 13%, after it raised the lower end of its annual earnings
outlook, citing strong holiday demand. Overall, the travel and leisure sector .SXTP rose 1.9%.
Worries over travel disruptions caused by the virus had led to a
heavy sell-off in the sector over the past few weeks.
Other China-exposed firms such as chipmaker ASML ASML.AS
and Hong Kong-focused bank HSBC HSBA.L were among the
companies giving the STOXX 600 index the biggest boost.
Basic resources stocks .SXPP rose 1.7% on an uptick in
iron ore and base metal prices while energy stocks .SXEP
tracked a rebound in oil prices from 13-month lows. O/R
IRONORE/ MET/L
But capping gains were shares of NMC Health NMC.L , which
fell 16% after buyout firm KKR KKR.N said it did not intend to
make an offer for the troubled healthcare company. NMC had shot
up 24% on Monday after it revealed KKR's approach.