- With 118 dead from Hurricane Helene, Biden defends US government response
- Breeder who tried to create enormous trophy sheep jailed in US
- Qatar Airways seeking 25% stake in Virgin Australia
- US port officials gird for strike as labor talks stay stuck
- As toll crosses 100, Trump puts Hurricane Helene at election center stage
- US Fed Chair sees 'further disinflation' in economy
- Epic Games sues Google and Samsung over app store
- Officials see no shortages from likely US port strike
- UK families of Gaza hostages warn Lebanon attack 'takes focus away'
- Shares in Stellantis, Aston Martin skid on profit warnings
- Dali prints found in London garage sold at auction
- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
- Cuts, cash, credit: China bids to jumpstart flagging economy
- France's debt weighs heavier ahead of budget debate
- Iran treads carefully, backing Hezbollah while avoiding war
- Return to sender: waste stranded at sea stirs toxic dispute
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Oil prices plunge after IMF cuts global growth forecast
Oil prices plunged by more than five percent Tuesday as investors worried about a drop in demand after the International Monetary Fund cut its global growth forecast.
Around 1530 GMT the price of Brent crude, the main international oil contract, was down 5.4 percent to $107.11 per barrel, while the main US oil contract, WTI, fell 5.5 percent to $102.30.
European stocks were all down at close, as traders fretted over the IMF's pessimistic outlook for 2022.
The IMF sharply downgraded its 2022 global growth forecast to 3.6 percent in its latest outlook report Tuesday, 0.8 percentage points lower than its previous estimate in January.
Energy prices are surging, debt levels are rising and shortages remain acute, the IMF noted, as multiple crises including the Ukraine war and coronavirus pandemic fuel an acceleration of inflation.
"The economic effects of the war are spreading far and wide -- like seismic waves that emanate from the epicenter of an earthquake," IMF chief economist Pierre-Olivier Gourinchas said in the report.
The downgrade was sharper for the eurozone, which is now expected to grow by 2.8 percent instead of 3.9 percent.
Michael Hewson, chief market analyst at CMC Markets UK, said Tuesday's "sharp decline in oil prices offsets concerns that the start of a renewed Russian offensive on the Donbass region (in the east) could increase the pressure on the EU to look at a complete embargo on Russian oil and gas".
Wall Street was up in late morning trading, with the three major indices reporting rises of more than one percent, a marked change from Monday when markets were lower over worries about higher interest rates.
Hewson noted that the IMF's cut to the US growth forecast, from 4.0 percent to 3.7 percent, was more modest than that to the eurozone.
Asian markets diverged as the region weighed the impact of Covid lockdowns in China, analysts at Charles Schwab investment firm said in a note.
China's economic growth accelerated in the first quarter of the year to 4.8 percent, official data showed Monday, but the government warned of "significant challenges" ahead.
- Key figures around 1530 GMT -
London - FTSE 100: DOWN 0.2 percent at 7,601.28 points (close)
Frankfurt - DAX: DOWN 0.07 percent at 14,153.46 (close)
Paris - CAC 40: DOWN 0.8 percent at 6,534.79 (close)
EURO STOXX 50: DOWN 1.0 percent at 3,744.35 (close)
Tokyo - Nikkei 225: UP 0.69 percent at 26,985.09 (close)
Shanghai - Composite: DOWN 0.05 percent at 3,194.03 (close)
Hong Kong - Hang Seng Index: DOWN 2.28 percent at 21,027.76 (close)
New York - Dow: UP 1.1 percent at 34,812.40
Dollar/yen: UP at 128.55 yen from 126.54 yen
Euro/dollar: DOWN at $1.0793 from $1.0802
Pound/dollar: DOWN at $1.3001 from $1.3023
Euro/pound: UP at 83.01 pence from 82.87 pence
Brent North Sea crude: DOWN 5.4 percent at $107.11 per barrel
West Texas Intermediate: DOWN 5.5 percent at $102.30 per barrel
burs-raz/rl
P.Schmidt--CPN