GLOBAL MARKETS-Shares struggle as coronavirus overshadows China data

* STOXX 600 recoups some of early losses, last down 0.2%
* Airlines, travel and leisure sectors suffer
* Greek, Italian benchmark bond yields hit record lows
* Asian shares boosted by strong China data
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Tom Wilson
LONDON, Oct 13 (Reuters) - European shares struggled on
Tuesday as worries over the coronavirus pandemic overshadowed
Chinese trade data that pointed to a buoyant recovery, while the
U.S. dollar edged away from a three-week low.
The Euro STOXX 600 .STOXX fell 0.4% before trimming
losses, with markets in Frankfurt .GDAXI , London .FTSE and
Paris .FCHI mirroring its moves. It was last down 0.2%, on
course to end three straight days of gains.
Keeping markets on edge, traders said, was news that Johnson
& Johnson JNJ.N was pausing its COVID-19 vaccine candidate
clinical trials because of an unexplained illness in a study
participant. Investors see the quick introduction of a vaccine as key to
helping economies recover. J&J's move comes after AstraZeneca
AZN.L paused late-stage trials of its experimental vaccine in
September, also due to a participant's unexplained illness.
The travel and leisure .SXTP and autos .SXAP sectors
suffered, losing 1% and 0.3% respectively after heavier falls in
early trading.
Wall Street was also set to lose ground. S&P 500 futures
ESc1 recovered most of their earlier losses to trade down
0.1%.
The risk-off mood contrasted with earlier resilience for
Asian markets. They recovered losses after Chinese data showed
exports rising 9.9% in September and imports swinging to a 13.2%
gain versus a 2.1% drop in August. The data, which suggests Chinese exporters are recovering
from the pandemic's damage to overseas orders, helped MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gain 0.2%.
Chinese blue-chip shares .CSI300 added 0.3% after dipping
early in the day. Some investors, though, raised questions about
how strong consumer demand would prove to be.
"The question is not necessarily how China's trade is doing
per se, but how well will consumers spend on Christmas to give
some sense of normalcy amid a period of great stress," said
Nordea Investments' Sebastien Galy in a note.
Currency traders were also watching Chinese trade-related
issues. Reports that Beijing has stopped taking shipments of
Australian coal caused the Australian dollar to drop as much as
0.6% to $0.7165 AUD=D4 The MSCI world equity index .MIWD00000PUS , which tracks
shares in nearly 50 countries, fell 0.1%.
Government bond yields in the euro zone held near recent
troughs, with hefty supply failing to dent a market bolstered by
expectations for further central bank easing. Germany's 10-year Bund yield touched -0.538% DE10YT=RR ,
its lowest in just over a week. Italian IT10YT=RR and Greek
GR10YT=RR benchmark 10-year debt both hit record lows.

STIMULUS HOPES
Investors increasingly expect Democratic candidate Joe Biden
will win the U.S. presidential election next month. That would
probably lead to a big stimulus package to help the
coronavirus-battered U.S. economy.
"Biden effectively leading in the polls is removing some
element of uncertainty," said Jeremy Gatto, an investment
manager at Unigestion in Geneva. "In investors' minds, it's not
a question of if we get a stimulus, but when."
Some expect a Biden win to undermine the U.S. dollar, since
he's pledged to raise corporate tax rates. But the dollar rose
0.2% against a basket of other currencies to 93.214 =USD ,
trying to extend a rebound from Friday's near-three-week low of
92.997.
The Chinese yuan fell 0.1% to 6.7466 per dollar CNH= ,
after the central bank set a weaker-than-forecast midpoint,
offsetting any boost from the trade data.
For Reuters Live Markets blog on European and UK stock
markets, please click on: LIVE/

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Emerging markets http://tmsnrt.rs/2ihRugV
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>