UPDATE 2-European shares steady; Italy extends coronavirus-driven slide

* Ryanair falls on plans to cut Italy flights by 25%
* Nokia gains after announcing CEO change
* SES slumps after downbeat 2020 forecast
* Battered Italian shares slide again

(Adds comments, updates to close)
By Sruthi Shankar and Shreyashi Sanyal
March 2 (Reuters) - European shares edged higher at the
close after seesawing for most of the session on Monday, as
traders swung their attention to the extra injections of support
they now expect major central banks to provide following the
coronavirus outbreak.
The pan-European STOXX 600 index .STOXX closed 0.1% higher
after a 12% slump last week, their worst weekly showing since
the 2008 financial crisis. Oil & gas companies .SXEP led gains
as crude prices jumped 5%. O/R
Sentiment firmed as bleak February factory activity data out
of China due to the virus fuelled hopes of more stimulus, even
as new infections in the country declined.
"The sizable though not recessionary hit to global growth is
also being met with a policy response to mitigate some of the
negative economic consequences," said Mark Haefele, chief
investment officer at UBS Global Wealth Management.
"This should ultimately bode well for risk assets, but
volatility is likely to remain high in the near term until this
path becomes more apparent."
The virus continues to spread elsewhere. The United States
reported its second death, while the United Kingdom reported a
total of 36 cases as of Sunday. Italy, the worst-hit in Europe, saw its death toll rise to
52 from 34 within 24 hours. Battered Milan stocks .FTMIB kept
sliding, despite reports the government will introduce measures
worth 3.6 billion euros ($3.5 billion), or 0.2% of gross
domestic product (GDP), this week to soften the blow.
Traders are now betting that the U.S. Federal Reserve will
cut interest rates by 50 basis points (bps) as early as this
month, while the European Central Bank is expected to cut rates
by a 10 bps at its April meeting.
Investors paid little attention to data which showed
Germany's manufacturing sector eased further in February. IHS
Markit said the prospect of disruptions to supply chains due to
the virus outbreak means the data could be misleading.
Meanwhile, Britain and the European Union were due to begin
talks on their future relationship after Brexit. Both sides say
they want to reach a deal by the end of the year. Travel & leisure stocks .SXTP continued to decline,
falling 2.7%, hurt by a nearly 5% drop in shares of Ireland's
Ryanair RYA.I .
The budget airline said it will cut its routes in and out of
Italy, one of its largest markets, by 25% for three weeks, due
to a significant drop-off in bookings since the virus outbreak.

Telecoms equipment maker Nokia NOKIA.HE rose 1.4% as
long-time Chief Executive Officer Rajeev Suri plans to step down
in September. Satellite operator SES SESFd.PA slumped 30% after it cut
its 2020 core profit and revenue forecasts, projecting a
slowdown in its video and networks divisions.