* World stocks down 0.5%
* Investors looking for medical response to coronavirus
* Oil prices extend tentative rebound
* Divisive details on EU stimulus remain unresolved
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tom Arnold
LONDON, April 24 (Reuters) - Global shares fell on Friday, spurred by delays to an agreement on divisive details of the European Union's stimulus package and doubts about progress in the development of drugs to treat COVID-19.
MSCI's All Country World Index .MIWD00000PUS , which tracks stocks across 49 countries, was down 0.5% and heading for its worst week in three, while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shrank 0.9%.
European stocks .STOXX opened 1.4% down, with London's FTSE 100 .FTSE shedding 1.3% as data showed UK retail sales crashed in March. a negative session," said François Savary, chief investment officer at Swiss wealth manager Prime Partners. "The market for the last week has been under consolidation after a strong rally. A lot of good news has already been priced in and news that the number of deaths had increased in the U.S. was also a warning sign for investors."
Avoiding another all-night bust-up, European Union leaders agreed on Thursday to build a trillion euro emergency fund to help recover from the coronavirus pandemic but leaving divisive details until the summer.
French President Emmanuel Macron said differences continued between EU governments over whether the fund should be transferring grant money, or simply making loans.
"The risk exists that a concrete decision on the creation of the recovery fund may not occur before September, thereby not being operational before early 2021," Alain Durre at Goldman Sachs (NYSE:GS) wrote in a note.
The major European sectors fell in early trading, with the banking index .SX7P leading the declines after S&P cut Commerzbank's CBKG.DE credit rating by a notch and lowered its outlook for Deutsche Bank DBKGn.DE to negative from stable. stock futures ESc1 were down 0.7% after the S&P 500 .SPX and the Nasdaq .IXIC turned negative at the close on Thursday in the wake of a report that Gilead Sciences Inc 's GILD.O antiviral drug remdesivir had failed to help severely ill COVID-19 patients in its first clinical trial. said the findings were inconclusive because the study conducted in China was terminated early.
The markets' sensitivity to news related to the medical treatment of COVID-19 reflected investors' desperation for a sign of when the global economy might start returning to normal, said Tim Ghriskey, chief investment strategist at New York-based wealth management firm Inverness Counsel.
"Any piece of bad news is likely to rattle the market," Ghriskey said. "Investors are keen for a semblance of hope that they can soon crawl out of their homes and get on with some form of normal life, even if with trepidation and fear."
U.S. coronavirus deaths exceeded 49,000 on Thursday as the number of lives lost in April rises by an average of 2,000 a day, according to a Reuters tally.
Business activity in the world's largest economy plumbed record lows in April, mirroring dire figures from Europe and Asia as strict stay-at-home orders crushed production, supply chains and consumer spending, a survey showed. U.S. House of Representatives on Thursday passed a $484 billion bill to expand federal loans to small businesses and hospitals overwhelmed by patients.
President Donald Trump, who has indicated he will sign the bill, said late Thursday that he may need to extend social distancing guidelines to early summer.
Oil prices extended a tentative rebound from a price collapse this week that pushed U.S. crude futures into negative for the first time ever, helped by producers such as Kuwait saying they would move to cut output. O/R
Brent crude LCOc1 was up 24 cents, or 1.1%, at $21.57, after rising more than $1 earlier and jumping 5% on Thursday. U.S. oil CLc1 was up 38 cents, or 2.3%, at $16.88 a barrel, having surged 20% in the previous session.
But the outlook remains dim because global energy demand has evaporated due to business closures and travel curbs aimed at slowing the pandemic. In addition, some countries are running out of space to store the crude oil that they are not using.
EU leaders' agreement on the emergency fund helped lift Italian government bond yields. Short-dated Italian bond yields jumped 12 basis points IT2YT=RR IT5YT=RR . Italy's 10-year bond yield was up 7 bps at 2.08% IT10YT=RR and the closely-watched Italian/German 10-year bond yield gap was 14 bps wider from late Thursday levels at around 252 bps, erasing Thursday's narrowing DE10IT10=RR . L5N2CC1PK
Set for its biggest weekly rise since early April, the U.S. dollar gained as the euro fell 0.4% against the greenback EUR=EBS to a one-month low at $1.07275 and a three-year low versus the yen at 115.55 yen EURJPY=EBS .