GLOBAL MARKETS-Global stocks turn negative as virus death toll mounts

* European stocks dip after recent gains
* EU officials fail to agree rescue package
* Italian government bond yields rise sharply
* Oil rebounds on output cut hopes
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Tom Arnold
LONDON, April 8 (Reuters) - World stocks turned negative on
Wednesday as the coronavirus death toll mounted and euro zone
finance minister failed to agree a rescue package to help
economies recover from the impact of the outbreak.
COVID-19 hospitalisations seemed to be levelling off in New
York state, but deaths across the United States jumped by a
record of more than 1,800. Meanwhile, France has officially registered more than 10,000
deaths from coronavirus infections, making it the fourth country
to cross that threshold after Italy, Spain and the United
States. Mainland China's new coronavirus cases
doubled in 24 hours as infected travellers returned
home. After two sessions of gains, European equities fell amid
renewed concern about the spread of the virus and the
continent's response to it.
The pan-European STOXX 600 index .STOXX dipped 0.7%.
London's FTSE 100 .FTSE fell 0.9%, as the country's
coronavirus death toll crossed 6,100. Germany's DAX .GDAXI
shed 0.8% after rallying more than 8% in the past two days, as
the number of confirmed cases rose for a second straight day.
Japanese shares were boosted by Prime Minister Shinzo Abe's
ending market uncertainty by declaring an emergency, helping the
Nikkei share average .N225 close 2.13% higher. E-Mini futures for the S&P 500 ESc1 rose 0.5%.
"After the market rallying, we are having some consolidation
as we are in a bottoming process, and you cannot have a V-shaped
recovery," said Francois Savary, chief investment officer at
Swiss wealth manager Prime Partners. "Trading is between 2200 to
2800 on the S&P 500 at the moment and we will stick to that for
the time being as we are in recovery phase.
Euro zone finance ministers failed to agree in all-night
talks on more support for their coronavirus-hit economies.
Eurogroup chairman Mario Centeno said on Wednesday morning he
was suspending the discussions until Thursday. Italian government bond yields rose in response. The 10-year
Italian yield rose 20 basis points to 1.799% IT10YT=RR in
early European trading, reaching its highest since March 19.
Two-year bonds yields were up 22 bps on the day at 0.79%
IT2YT=RR , the highest in three weeks. Investor sentiment was helped by a bounce in oil prices,
with Brent crude LCOc1 adding 0.8% to $32.08 per barrel after
falling 3.6% on Tuesday. U.S. West Texas Intermediate (WTI)
crude CLc1 rose 3.8% to $24.45 a barrel. They were lifted on
hopes that a meeting between OPEC members and allied producers
on Thursday would trigger output cuts to shore up prices.
After U.S. stock markets closed on Wednesday, President
Donald Trump said the United States may be getting to the top of
the coronavirus curve. The Trump administration asked Congress for an additional
$250 billion in emergency economic aid for small U.S. businesses
reeling from the pandemic. "While the virus' 'curve is flattening', the economic
effects of the corona crisis will linger for years in our view,"
Commonwealth Bank of Australia economist Joseph Capurso said in
a note.
"Economies will take time to re-open, some businesses will
not re-open, and unemployment will take years to return to
levels reported at the end of 2019."
Against a basket of currencies, the dollar edged up 0.25% to
100.210 =USD . The euro EUR=EBS fell 0.4% to $1.0852.
The Aussie dollar AUD=D3 fell 0.5% to $0.6137 after
ratings agency S&P downgraded the outlook on its sovereign AAA
rating from stable to negative and warned the cost of combating
the virus would weigh on the country's finances. Gold prices XAU= were stuck at $1,648, after touching a
three-and-a-half-week high on Tuesday at $1,671.

(Editing by Larry King)