- Small Quebec company dominates one part of NHL hockey: jerseys
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- Want to film in Paris? No sexism allowed
- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Little progress at key meet ahead of COP29 climate summit
- 'Party atmosphere': Skygazers treated to another aurora show
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Thunberg leads pro-Palestinian, climate protest in Milan
- Stock markets diverge before China weekend briefing
- EU questions shopping app Temu over illegal products risk
- Han Kang's books sell out in South Korea after Nobel win
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- Musk unveils robotaxi, pledges it 'before 2027'
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- On US coast, wind power foes embrace 'Save the Whales' argument
- At least 10 dead in Florida after Hurricane Milton spawns tornadoes
- Internet Archive reels from 'catastrophic' cyberattack, data breach
- Wall Street stocks retreat from records on US inflation data
- Israel strikes central Beirut, killing 22
- Solar storm could impact US hurricane recovery efforts: agency
- Delta eyes Election Day travel pullback as profits climb
- Florida battered by hurricane, floods but spared 'worst-case scenario'
- UK's William and Kate in first joint public engagement since cancer treatment
- Over 200 women in legal talks with Harrods over Fayed abuse claims
- A very stiff breeze: BBC says sorry for 20,000 kph wind forecast
- Musk finally unveiling his long-promised robotaxi
- London's Frieze art fair goes potty for ceramics
- US, Europe stocks fall on US inflation data
- US consumer inflation eases to 2.4% in September
- Hurricane Milton tornadoes kill four in Florida amid rescue efforts
- South Korea's Han Kang wins literature Nobel
- Ikea posts fall in annual sales after lowering prices
- Stock markets diverge, oil gains after China rebounds
- World can't 'waste time' trading climate change blame: COP29 hosts
- South Korean same-sex couples make push for marriage equality
- Mumbai declares day of mourning for Indian industrialist Ratan Tata
- 7-Eleven owner restructures to fight takeover
- Sri Lanka recovering faster than expected: World Bank
- Hong Kong, Shanghai rally as most markets track Wall St record
- Uniqlo owner reports record annual earnings
- Hong Kong, Shanghai rally as markets track Wall St record
- Indonesia biomass drive threatens key forests: report
- Mumbai mourns Indian industrialist Ratan Tata
US stocks tumble after Fed rate hike, concerns on economy
Wall Street stocks slumped Wednesday as the US Federal Reserve continued hiking interest rates to fight inflation, while noting that banking sector turmoil could weigh on the economy.
The tumble came after European markets made timid gains ahead of the US central bank's rate decision, and follows a relief rally earlier this week.
Stocks had gained after financial authorities moved to prevent contagion in the banking sector, following the collapse of three US regional lenders this month.
But all eyes were on the Fed as it unveiled an anticipated quarter-point rate hike, its ninth straight increase in an effort to combat stubborn price increases.
With tensions in the banking sector blamed on steep hikes in borrowing costs over the past year, pressure has been building on central banks to halt their monetary tightening campaign.
In a statement, the Fed said recent banking sector developments are likely to bring "tighter credit conditions for households and businesses."
They would also bog down economic activity, the central bank added.
The Dow and tech-heavy Nasdaq both ended 1.6 percent lower, while the S&P 500 shed 1.7 percent.
Adding to jitters were comments by US Treasury Secretary Janet Yellen, who told a Senate subcommittee Wednesday that the United States was not considering a broad increase in deposit insurance.
"Stocks were initially rallying on optimism that the Fed is done with raising rates," said Edward Moya, senior market analyst at Oanda.
"But Yellen's comment on deposit insurance unnerved investors as the banking turmoil will not be going away anytime soon," he added.
The Fed's quarter-point hike was in line with expectations, and matched the size of its last increase in February.
Fed Chair Jerome Powell told a press briefing that "rate cuts are not in our base case," adding that the Fed needs to boost supervision and regulation of banks after the swift collapse of Silicon Valley Bank (SVB).
"Anytime you put forward more regulation, it's obviously a negative in terms of stocks," said Peter Cardillo of Spartan Capital.
- 'No-win position' -
"Ultimately the Fed was in a no-win position," said Stephen Innes of SPI Asset Management after the rate decision.
Pausing the rate hikes could have sparked market worries that there was more to the banking sector's woes than met the eye, prompting a "worse outcome," Innes said in a note.
London, Paris and Frankfurt finished barely in the green, days after troubled Swiss banking giant Credit Suisse was swallowed up by UBS.
Prior to the Fed's announcement, reassurances and stability measures provided by authorities appeared to be having an "enduring positive effect," said National Australia Bank analyst Rodrigo Catril.
On Tuesday, Yellen had reiterated support for troubled lenders in the world's biggest economy.
This added to authorities' moves to reassure depositors after the downing of SVB and Signature Bank, along with efforts by the Fed and other major central banks to improve lenders' access to liquidity.
European Central Bank chief Christine Lagarde on Wednesday said recent financial turbulence could add to "downside risks" in the eurozone, but did not commit to further interest rate hikes there.
- Key figures around 2130 GMT -
New York - Dow: DOWN 1.6 percent at 32,028.90 (close)
New York - S&P 500: DOWN 1.7 percent at 3,936.82 (close)
New York - Nasdaq: DOWN 1.6 percent at 11,669.96 (close)
London - FTSE 100: UP 0.4 percent at 7,566.84 points (close)
Frankfurt - DAX: UP 0.1 percent at 15,216.19 (close)
Paris - CAC 40: UP 0.3 percent at 7,131.12 (close)
EURO STOXX 50: UP 0.3 percent at 4,195.21
Tokyo - Nikkei 225: UP 1.9 percent at 27,466.61 (close)
Hong Kong - Hang Seng Index: UP 1.7 percent at 19,591.43 (close)
Shanghai - Composite: UP 0.3 percent at 3,265.75 (close)
Euro/dollar: UP at $1.0860 from $1.0772 on Tuesday
Pound/dollar: UP at $1.2273 from $1.2218
Euro/pound: UP at 88.47 pence from 88.13 pence
Dollar/yen: DOWN at 131.38 yen from 132.54 yen
West Texas Intermediate: UP 1.8 percent at $70.90 per barrel
Brent North Sea crude: UP 1.8 percent at $76.69 per barrel
burs-cw/rl/bys/caw
P.Gonzales--CPN