Investors took a dim view of paltry European efforts to shore up unsettled markets, sending US and European equity stocks lower on Tuesday, while another emergency Federal Reserve move to shore up credit markets curbed the safe-haven appeal of government debt. The US dollar and the yen fell after the Fed announced the creation of a new funding facility to thaw the frozen commercial paper market that is critical for funding day-to-day operations for many companies. That move raised risk appetites in currency markets, while it cut prices for US and euro zone government debt. But gold prices climbed, with an all-time high set in euro terms, Reuters data showed, as lingering fears over the outlook for the financial sector spurred buying. A weaker dollar against the euro also helped lift gold prices. The Dow Jones industrial average was down 146.71 points, or 1.47 percent, at 9,808.79. The Standard & Poor's 500 Index was down 18.10 points, or 1.71 percent, at 1,038.79. The Nasdaq Composite Indexwas down 36.83 points, or 1.98 percent, at 1,826.13. The FTSEurofirst 300 index of top European shares ended 0.14 percent lower at 1,003.51 points, a day after the index posted its worst one-day percentage fall on record. The dollar fell against a basket of major currencies, with the US Dollar Index off 0.62 percent at 81.172. Against the yen, the dollar rose 0.28 percent at 102.10. In euro terms, gold rose to a new record of 654.22 euros an ounce, up from 635.29 euros late on Monday. Meanwhile, oil prices rebounded slightly Tuesday, hovering near $89 a barrel. Light, sweet crude for November delivery rose 97 cents to $88.78 a barrel on the New York Mercantile Exchange. The contract fell $6.07 to settle on Monday at $87.81, the lowest level since Feb. 6. In London, November Brent crude fell 46 cents to $83.22 a barrel on the ICE Futures exchange.
