EUROPEAN UNION

The euro edged up on Thursday supported by healthy results at Spanish and French bond auctions and stable global equities, but investors remained cautious ahead of a key reading on the U.S. labor market on Friday.

The euro edged up on Thursday after healthy results at Spanish and French bond auctions but investors cautiously awaited comments from European Central Bank President Jean-Claude Trichet. The ECB earlier left interest rates unchanged, as expected, at 1.0 percent. The decision had little impact on the euro. Trichet was due to hold a news conference at 1230 GMT.

World stocks hit a two-week high on Thursday and oil prices rose as optimism from strong U.S. and Chinese manufacturing data extended into a second day ahead of a euro zone interest rate decision and key U.S. jobs data.

The European Central Bank is expected to extend its liquidity safety-net on Thursday, delaying its exit from crisis support as policymakers confront a lopsided euro zone recovery and vulnerable banks in perimeter countries.

A United Nations human rights body rebuked France on Friday for its crackdown on Roma and urged the government to try to integrate members of the EU's biggest ethnic minority rather than send them to eastern Europe.

The federal government has committed at least $8-billion (and counting) for the development of a nationwide high-speed intercity passenger railway system in almost three-dozen states. Rail advocates have long dreamed of an extensive railway grid that will provide clean, speedy, energy-efficient travel.

Europe is set to ramp up economic surveillance to prevent a repeat of the region's recent debt crisis, European Central Bank Executive Board member Juergen Stark said on Monday.

The European Central Bank on Tuesday said gold and gold receivables held by euro zone central banks rose by one million euros to 352 billion euros in the week ending August 6. In its regular weekly consolidated financial statement, the ECB said net foreign exchange reserves in the Euro system of central banks were virtually unchanged at 191.7 billion euros.

A European Union financial stability fund with the potential to raise up to 440 billion euros ($580 billion) to help EU countries weather debt problems is now fully operational, officials said on Friday.

A European Union financial stability fund with the potential to raise up to 440 billion euros ($580.7 billion) to help countries weather debt problems is now fully operational, officials said on Friday.

Third quarter euro zone economic data has been surprisingly strong so far but the European Central Bank still expects the bloc's economic recovery to be moderate and uneven, President Jean-Claude Trichet said on Thursday.

The dollar fell versus the Japanese yen on Wednesday as a weaker-than-expected reading on new orders for U.S. durable goods added to fears about the U.S. economic outlook. Demand for the dollar also fell against the euro as investors awaited for more supportive news for the euro, which rose above $1.30 but has been stuck in a range recently.

EU tests of banks' ability to withstand financial shocks, criticized as too easy after only 7 out of 91 failed, face their own stress test in the markets on Monday with early signs pointing to a more positive response.

Euro zone member Slovakia will have strong reasons to reconsider its help to indebted euro group member Greece, the Eurogroup Chairman Jean-Claude Juncker was quoted as saying.

Seven European banks are not strong enough to withstand another recession and would face a capital shortfall of 3.5 billion euros ($4.5 billion), far less than expected, stoking fears the keenly-awaited stress tests were too soft.

The Bank of Canada raised its key interest rate by 25 basis points to 0.75 percent on Tuesday, as expected, but cautioned that the domestic and global recoveries will be slower than previously expected in a hint that any further hikes may be gradual.

European governments must press ahead with deficit cuts to restore investor confidence even if it means economic growth suffers, European Central Bank Governing Council member Christian Noyer said on Monday.

The euro hovered near a two-month high against the dollar on Monday, rebounding from lows hit after a downgrade of Ireland's sovereign ratings, as investors awaited results of European banks' stress tests.

Europe Union finance ministers remained divided on Tuesday over what data would be published in banks stress tests due in 10 days but pledged to make them as transparent as possible.

A leading EU official on Tuesday urged full disclosure on how the region's banks perform in stress tests, but sources said the bloc's finance ministers remained divided on what data should be published.

Account holders in the European Union who are faced with a run on their bank would get their money back within a week under a draft EU law published on Monday to protect consumers in the wake of the global crisis.