* Brent tumbles 12% then recovers it all
* WTI down near $10 ahead of EIA
* European stocks firm after Tuesday's 3.3% fall
* Wall Street futures higher
* U.S. Treasury yields rise as investors exit shelter
* Dollar continues to reign but off two-week highs
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, April 22 (Reuters) - Oil took markets on another
rollercoaster ride on Wednesday as Brent somehow managed to
reverse an early 12% crash to 1999 lows and give battered
petrocurrencies and stock markets something buoyant to climb on.
The wildest trading in oil market history continued with
benchmark Brent initially swallow-diving below $16 a barrel
LCOc1 , after U.S. crude prices had gone deeply negative
earlier in the week, only to then rally to nearly $20. O/R
With coronavirus lockdowns slashing demand for everything
from petrol to jet fuel, and markets still bloated by a turf war
being fought by Saudi Arabia and Russia, places to store the
excess supply are running out.
Christopher Peel, CIO of Tavistock Wealth, said eight oil
supertankers were now moored on the river outside his window in
the Portuguese capital Lisbon.
"There is nowhere to put the oil so it shouldn't come as any
surprise to anyone that the front months (oil price contracts)
are getting decimated," Peel said, though he predicted it should
be a relatively temporary situation.
As well as the fightback from oil, there was encouragement
that Europe's main stock markets were moving higher after a poor
close overnight in New York and a mixed day for Asia.
Focus was on whether European Union leaders, who meet on
Thursday, will be able to agree more aid to help the region cope
with the coronavirus outbreak. Recent days have
seen a blizzard of fresh stimulus announced in other economies.
The pan-European STOXX 600 index .STOXX and Wall Street
futures were up around 1%, after both went tumbling more than 3%
on Tuesday following the collapse in oil prices. .EU
Italian shares .FTMIB gained 1.2% and the government's
bond yield steadied after Prime Minister Giuseppe Conte said
Italy, one of the countries hit hardest by the pandemic, could
start pulling out of strict stay-at-home orders from May 4.
Traders were also buoyed after Italy breezed through a major
debt sale on Tuesday and speculation continued that
the European Central Bank would provide more support measures.
"It's no surprise that we see (bond yields slipping) today,"
said DZ Bank strategist Sebastian Fellechner, citing the
conclusion of Italy's jumbo bond sale.
"Brent is stable this morning...This is also reflected then
in the government bond market, in that we see spreads are
stabilising and (core) yields are slightly higher this morning."
Germany's 10-year yield was up 2 basis points to -0.46%
DE10YT=RR . The five-year U.S. Treasuries yield also rose to
0.35% after hitting a record low of 0.3010% on Tuesday
US5UT=RR . The 10-year notes yield stood at 0.58% US10YT=RR ,
still near last month's record lows caused by panic buying.
MAGIC MONEY FORESTS
While a Reuters tally shows there have been more than 2.5
million cases globally of the COVID-19 respiratory disease
caused by the new coronavirus, another $500 billion in relief
has come through for the U.S. economy, and the governors of half
a dozen U.S. states are planning to reopen business.
Restrictions are tentatively being lifted in a host of
countries and many more are unveiling stimulus measures. South
Africa's president pledged a $26 billion rescue package on
Tuesday for his country's economy, which was suffering from
anaemic growth even before the coronavirus outbreak.
Mexico unveiled a $31 billion package and cut its benchmark
rate by 50 basis points, Turkey cut by another 100 basis points
while South Korea readied a third supplementary budget and a
$32.4 billion fund to prop up its economy.
"If the global economy can reopen in eight weeks or so the
damage is done (for equity markets), but the longer-term damage
is in the bond markets," said Tavistock's Peel, warning of the
huge rise in debt levels as countries ramp up aid.
U.S. stock futures had bounced back to be about 1% higher
after Tuesday's falls.
In the currency market, the dollar had levelled out after
rising when investors fled oil-linked currencies such as the
Norwegian crown NOK= , Russian rouble and Canadian dollar
CAD=D4 . The safe-haven yen held firm at 107.79 to the dollar JPY=
while the Swiss franc stood near five-year high against the euro
at 1.05255 franc EURCHF= . Norway's crown and the rouble both
recovered though, and the Australian dollar was up 0.8% after a
record surge in retail sales last month spurred by panic buying
AUD=D3 . /FRX
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Global bonds dashboard (DO NOT USE UNTIL UPDATE FOUND) http://tmsnrt.rs/2fPTds0
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
The plummeting price of oil interactive https://reut.rs/39ieums
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(Editing by Timothy Heritage/Mark Heinrich)