(Reuters) – European shares shed early gains on Thursday as another dramatic round of monetary stimulus by the European Central Bank failed to stymie a month-long sell-off in equities due to the coronavirus outbreak.

Seeking to stem the past month’s rout on markets and cap borrowing costs for Italy and other under-pressure governments, the European Central Bank will now pump more than 1 trillion euros of new funds into the financial system this year.

Still, the pan-European STOXX 600 index fell as much as 1%, with analysts suggesting that losses were yet to find a floor.

“Our view is that equities are likely to fall further from here. We felt the market was overvalued to begin with, and actually we’re still quite some way off previous recessionary lows to valuation multiples,” said Daniel Grosvenor, director of equity strategy at Oxford Economics in London.

Sectors ranging from basic resources .SXPP to auto parts .SXAP and technology .SX8P were all in the red.

Energy stocks .SXEP sank further after ending at their lowest in 24 years on Wednesday, following recent, substantial weakness in oil prices.

European shares have lost roughly a third of their value since mid-February, and companies continued to rattle out statements on Thursday pointing to expected losses of business and steps to prop up their finances.

Regional travel and leisure companies .SXTP fell another 4%, underperforming other sectors after Germany’s Lufthansa (LHAG.DE) became the latest to warn that the airline industry may not survive without state aid if the virus outbreak lasts for a long time.

The UK’s mid-cap FTSE 250 index .FTMC dropped 3.7% as London braced for a virtual shutdown due to the rapid spread of the virus.

On the other hand, Italian stocks .FTMIB held on to some gains, with utility stocks – a common defensive play – propping up the benchmark index as local bond yields took a beating.

Among individual movers, luxury goods group Burberry (BRBY.L) was down 6.7 % after warning that sales in the final weeks of March would plunge by around 70% to 80% compared with last year.

Credit Suisse Group (CSGN.S) rose 1.5% after saying business in the first quarter had been going well despite jitters over the outbreak.

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