Euro gains on EU recovery-fund plan, oil wavers
By Herbert Lash NEW YORK (Reuters) - The euro and European government debt rallied on Tuesday, lifted by a Franco-German proposal to fund grants for regions hit hardest by the coronavirus pandemic, while oil traded mostly higher on growing demand as countries eased business lockdowns.
By Herbert Lash
NEW YORK (Reuters) - The euro and European government debt rallied on Tuesday, lifted by a Franco-German proposal to fund grants for regions hit hardest by the coronavirus pandemic, while oil traded mostly higher on growing demand as countries eased business lockdowns.
A gauge of global equity markets retreated late in the session after Wall Street skidded on a report from medical news website STAT that said Moderna Inc
Moderna shares closed down 10.4% after surging 20% on Monday when it said a small-early stage trial showed promising results, news that rallied equity markets around the world.
Gold prices rose as some investors sought the safe-haven asset on recession fears after a 30.2% decline in U.S. housing starts in April, the biggest percentage drop on record.
Permits for future construction tumbled, adding to data showing the pandemic will drive the deepest U.S. economic contraction in the second quarter since the Great Depression.
"The Franco-German proposal represents a material step forward towards harnessing joint fiscal capacity to provide sustained fiscal stimulus to support the economic recovery," said Lee Hardman, currency analyst at MUFG.
Spanish and Portuguese government bond yields fell after a big drop in Italian yields on Monday.
Europe's STOXX 600 index <.STOXX> slipped 0.61% after the worldwide surge in equity markets on Monday. But MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.21%.
On Wall Street, the Dow Jones Industrial Average <.DJI> fell 390.51 points, or 1.59%, to 24,206.86. The S&P 500 <.SPX> lost 30.97 points, or 1.05%, to 2,922.94 and the Nasdaq Composite <.IXIC> dropped 49.72 points, or 0.54%, to 9,185.10.
Federal Reserve Chair Jerome Powell told U.S. lawmakers that the Coronavirus Aid, Relief and Economic Security (CARES) Act passed in March was "critical" to the Fed's ability to expand credit to offset the economic blow from the coronavirus.
U.S. Treasury yields were lower. The benchmark 10-year
Crude oil prices traded higher most of the session but Brent eased toward the end.
U.S. gold futures
(Reporting by Herbert Lash, additional reporting by Olga Cotaga in London; Editing by Dan Grebler)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.