GLOBAL MARKETS-U.S. stocks dive after Trump halts talks on coronavirus relief legislation

* Fed Chair Powell warns of economic woes and need for
fiscal aid
* Crude extends gains on supply pressures
* Trump tweets he told Senate leader McConnell to stop
negotiating
stimulus bill
* President Trump receiving top care for COVID-19 since
release
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

(Updates with market moves after Trump calls off COVID stimulus
talks)
By Stephen Culp
NEW YORK, Oct 6 (Reuters) - Wall Street promptly reversed
solid gains late Tuesday, plunging into negative territory after
President Donald Trump announced he was halting talks on
coronavirus relief legislation until after the Nov. 3 elections.
All three major U.S. stock indexes abruptly turned sharply
lower on the news.
Trump's announcement comes on the heels of U.S. Federal
Reserve Chair Jerome Powell warning of dire economic
repercussions if Congress fails to pass additional fiscal
stimulus.
In remarks delivered online to the National Association for
Business Economics, Powell warned the U.S. economy could slip
into a downward spiral if the coronavirus is not contained and
Congress fails to deliver additional fiscal support to
businesses and households. "The things that are obvious to us are that small businesses
are closing and unemployment remains high in the service
sector," said John Augustine, chief investment officer at
Huntington National Bank in Columbus, Ohio. "The Fed
aggressively wants to address both of those with more fiscal
stimulus."
The Dow Jones Industrial Average .DJI fell 327.98 points,
or 1.17%, to 27,820.66, the S&P 500 .SPX lost 39.32 points, or
1.15%, to 3,369.31 and the Nasdaq Composite .IXIC dropped
145.03 points, or 1.28%, to 11,187.46.
The pan-European STOXX 600 index .STOXX was up 0.07% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.60%.
Crude prices extended gains, boosted by supply disruptions
from approaching storms in the Gulf of Mexico and an ongoing oil
worker strike in Norway. U.S. crude futures settled at $40.67 per barrel, a gain of
3.7%, while Brent gained 3.29% on the day to settle $42.65 per
barrel.
The dollar was essentially flat but gained ground after
Trump's announcement. The dollar index .DXY rose 0.13%, with the euro EUR=
down 0.25% to $1.1751.
The Japanese yen strengthened 0.16% versus the greenback at
105.59 per dollar, while Sterling GBP= was last trading at
$1.2903, down 0.57% on the day.
U.S. Treasury yields slightly extended their rise after Fed
Chair Powell's remarks.
Benchmark 10-year notes US10YT=RR last rose 7/32 in price
to yield 0.7403%, from 0.762% late on Monday.
The 30-year bond US30YT=RR last rose 21/32 in price to
yield 1.5387%, from 1.567% late on Monday.
Gold prices were lower after the safe-haven precious metal
erased earlier gains.
Spot gold XAU= dropped 1.1% to $1,892.06 an ounce.

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Stocks versus COVID https://tmsnrt.rs/2GCoYoa
GRAPHIC-World FX rates http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
GRAPHIC-Emerging markets http://tmsnrt.rs/2ihRugV
GRAPHIC-Global assets in 2020 http://tmsnrt.rs/2yaDPgn
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