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German Cabinet Approves Euro Crisis Fund

Germany's cabinet has approved its part of a $1 trillion rescue package of loan guarantees for crisis-hit euro countries.

The $1 trillion emergency loan fund, combining money from European Union states and International Monetary Fund, marks the biggest financial system rescue package since the 2008 banking crisis.

Following the agreement on the package, European and U.S. share prices have seen some of their biggest gains in a year or more.

Many European markets on May 10 posted record single-day gains, among them Spain, Portugal and Italy, while the U.S. Dow Jones Industrial Average rose 3.9 percent.

The euro gained as much as 3 percent on the day, but later it lost nearly all of its gains to trade at $1.26 per U.S. dollar today.

The price of oil also surged to $76.80 per barrel in New York, but today it fell back to near $76 per barrel on Asian markets.

compiled from agency reports