UPDATE 2-European stocks "take a breather" as earnings soothe selling fever

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* Utilities and automobile stocks gain on strong earnings
* Travel & leisure stocks lead declines
* Weir Group tops STOXX 600 on strong FY results
* ISS slumps to record low on weak profit outlook

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By Ambar Warrick
Feb 26 (Reuters) - European shares ended flat on Wednesday,
recouping all of the day's losses as strong utility and
automobile earnings helped somewhat distract markets from the
coronavirus outbreak.
Spanish electricity provider Iberdrola SA IBE.MC led gains
in utilities after posting robust annual profit growth, while
French carmaker Peugeot SA PEUP.PA topped the auto sector
after a strong 2019. The main European equity benchmark STOXX 600 .STOXX closed
largely unchanged after dropping as much as 2.9% to a four-month
low earlier in the session. Analysts suggested that investors
were exercising some restraint after an extended sell-off over
the prior sessions.
"We've had quite a lot of aggressive selling, but at the
moment, because there aren't any reports of further outbreaks,
or anything we're not familiar with, (the market) seems to have
taken a bit of a breather to see what kind of damage is being
done" said Michael Baker, an analyst at ETX Capital in London.
The STOXX 600 has shed roughly $700 billion in value this
week as the coronavirus' spread to shores beyond China prompted
a swift reassessment of its economic impact.
Utilities .SX6P and automobiles .SXAP were the best
performing sectors for the day. Gains in Peugeot spilled over to
Italy's Fiat Chrysler FCHA.MI , which is set to merge with the
French carmaker.
On the other hand, travel stocks .SXTP were the worst hit
sector. The subindex has lost more than 9% so far this week,
with airline stocks bearing the bulk of losses.
Resource .SXPP and oil stocks .SXEP also dropped as
concerns over Chinese demand dented commodity prices.
The losses followed a grim session for Asia and Wall Street
overnight after U.S. health officials warned that Americans
should prepare for a possible spread of the virus. Wall Street
however, attempted a recovery in early trade on Wednesday. .N
Italian stocks .FTMIB bounced back from a near three-month
low, snapping a four-day losing streak spurred by a coronavirus
outbreak which has made the country the worst-hit in Europe.
British engineering company Weir Group WEIR.L topped the
STOXX 600 with a 11% rise after its annual core earnings topped
expectations. The biggest decliner on the STOXX 600 was Danish services
company ISS ISS.CO , slumping 15% to a record low after it
warned on its 2020 profit. Latest data from Refinitiv shows European companies are
expected to report a 1.2% fall in profits in the fourth quarter,
a bigger drop than previously expected, which would keep them
stuck in a year-long earnings recession.