- Rally in oil prices loses steam on mixed day for global stocks
- South America treated to rare 'ring of fire' eclipse
- Biden official says port strike deal not as far as parties think
- Mexico's new president offers apology for 1968 student massacre
- Historic funding round values OpenAI at $157 billion
- Mixed US car sales in Q3 as industry hopes for post-election bounce
- Thunderstorms are a 'boiling pot' of gamma rays, scientists find
- Scientists unlock secret of 'Girl With Pearl Earring'
- Dolphins flash friendly grins when they're ready to play
- Facing backlash, EU moves to delay deforestation rules
- US private sector adds more jobs than expected in September: ADP
- Boys out of critical condition after Zurich stabbings
- Spain logs record summer tourism as inflow draws protests
- Hedi Slimane quits as Celine's artistic director
- Oil prices extend rally on Iran attack
- Spain welcomed record number of tourists this summer
- France says coming tax hikes on the wealthy to be 'temporary'
- Why are Thailand's roads so deadly?
- Oracle to invest $6.5 bn in Malaysian cloud services region
- Parkrun marks 20 years of a free weekly jog, run... or walk
- Oil extends rally after Iran attack, Hong Kong soars again
- Prostitutes, prospectors drive spread in DR Congo mpox capital
- Oil extends rally after Iran attack, Hong Kong resumes surge
- Extreme heat another form of death sentence in Texas jails
- Can music help plants grow? Study suggests sound boosts fungus
- Nike earnings drop, says turnaround will take time
- US dockworkers launch mass strike a month before election
- Iron Dome: Israel's key anti-missile shield
- Cranes stand still as US dockworkers fight for 'future'
- GM reports US sales dip, but says EVs grew
- Sheinbaum takes office as Mexico's first woman president
- Webb telescope detects carbon dioxide on Pluto's largest moon
- Stock markets slump, oil jumps on Middle East concerns
- French PM vows more taxes and spending cuts ahead of budget fight
- Germany inaugurates IBM's first European quantum data centre
- Stock markets diverge as eurozone inflation drops further
- France's richest man takes control of Paris Match magazine
- Anger meets tear gas as Nigeria hardship protests fizzle out
- US dockworkers launch mass strike month before election
- Evacuations from Lebanon: what we know
- Feathers fly at Chanel's Paris fashion return
- UAE oil giant ADNOC swoops on German chemicals firm Covestro
- Eurozone inflation falls under 2% for first time since 2021
- Coldplay ticket scalping fiasco sparks backlash in India
- Droughts drive Spanish boom in pistachio farming
- Tokyo recovers some losses to lead Asian markets higher
- Rural schools empty in North Macedonia due to exodus
- US dockworkers launch strike after labor contract expires
- Thousands evacuated as Super Typhoon Krathon approaches Taiwan
- Kenya airport whistleblower fears for his life
RBGPF | -2.18% | 59.5 | $ | |
RYCEF | -0.43% | 6.9 | $ | |
GSK | -2.15% | 39.45 | $ | |
BTI | -1.33% | 35.97 | $ | |
CMSC | 0.04% | 24.78 | $ | |
NGG | -1.85% | 68.78 | $ | |
RELX | -0.11% | 47.29 | $ | |
VOD | -2.16% | 9.74 | $ | |
SCS | -2.56% | 12.87 | $ | |
RIO | -0.48% | 70.82 | $ | |
CMSD | -0.04% | 24.93 | $ | |
BP | 0.86% | 32.37 | $ | |
AZN | 1.14% | 79.58 | $ | |
BCC | -1.33% | 139.53 | $ | |
JRI | -1.12% | 13.38 | $ | |
BCE | -1.13% | 34.44 | $ |
'Bear' market: Inflation fears pummel global stocks
Equity markets dove again Monday, with Wall Street officially entering a bear market as investors bet on more aggressive Federal Reserve rate hikes to address runaway inflation.
Global markets churned in the aftermath of the latest US consumer price data, as bitcoin fell to an 18-month low, the dollar streaked higher and oil prices zig-zagged.
"The hangover from a higher-than-expected US inflation reading is continuing to cause scissoring pain throughout the markets, as it extinguishes the hope the US Federal Reserve might be able to take its foot off the pedal on interest rate rises," noted AJ Bell investment director Russ Mould.
The S&P 500, the broad-based Wall Street equity index, plummeted 3.9 percent to finish the day at 3,749.53, a drop of more than 20 percent from its most recent peak on January 4 -- the definition of a bear market.
Bourses in Paris, Frankfurt, Tokyo and Hong Kong all fell at least two percent.
The report Friday showed US consumer prices jumped 8.6 percent compared to May 2021, hitting a fresh 40-year high, topping expectations and dashing hopes that price pressures had peaked.
The Fed has signaled plans for a second large 0.5 percentage-point interest rate hike on Wednesday.
But more voices are projecting a three-quarter point increase. Barclays said the more aggressive move was called for "to reinforce credibility and get ahead of inflationary pressures."
The concerns sent the yield on the 10-year US Treasury note, a proxy for interest rates, above 3.3 percent, the highest level in more than 11 years.
"The market is now thinking much more about the Fed driving rates sharply higher to get on top of inflation and then having to cut back as growth drops," said SPI Asset Management's Stephen Innes.
The dollar, however, gained ground against major rivals, benefiting from its status as a haven investment and expectations of rapidly rising interest rates.
The US currency struck a 24-year peak against the yen before retreating, while it broke above 78 Indian rupees for the first time, and jumped more than one percent versus the pound.
Oil prices shook off early weakness and edged higher despite fresh worries about China, where Beijing launched a new round of mass testing in the city following the latest Covid-19 outbreak.
- Bitcoin crash -
Bitcoin tumbled to an 18-month low of under $23,000 as investors shunned risky assets in the face of the vicious global market selloff.
The unit took a heavy knock also from news that cryptocurrency lending platform Celsius Network paused withdrawals, citing volatile conditions.
"It is not very surprising to see such a strong downturn as we have noticed an increased correlation over the last few years between traditional stocks, which have also tanked recently, and the cryptocurrency market," noted XTB chief market analyst Walid Koudmani.
Patrick O'Hare, analyst at Briefing.com, said the carnage in the crypto market "is compounding worries about growth prospects due to the reduced wealth effect that also incorporates falling stock and bond prices."
- Key figures at around 2040 GMT -
New York - Dow: DOWN 2.8 percent at 30,516.74 (close)
New York - S&P 500 : DOWN 3.9 percent at 3,749.63 (close)
New York - Nasdaq: DOWN 4.7 percent at 10.809.23 (close)
London - FTSE 100: DOWN 1.5 percent at 7,205.81 (close)
Frankfurt - DAX: DOWN 2.4 percent at 13,427.03 (close)
Paris - CAC 40: DOWN 2.7 percent at 6,022.32 (close)
EURO STOXX 50: DOWN 2.7 percent at 3,502.50 (close)
Tokyo - Nikkei 225: DOWN 3.0 percent at 26,987.44 (close)
Hong Kong - Hang Seng Index: DOWN 3.4 percent at 21,067.58 (close)
Shanghai - Composite: DOWN 0.9 percent at 3,255.55 (close)
Dollar/yen: UP at 134.42 yen from 134.41 yen late Friday
Euro/dollar: DOWN at $1.0412 from $1.0519
Pound/dollar: DOWN at $1.2136 from $1.2493
Euro/pound: UP at 85.76 pence from 85.41 pence
Brent North Sea crude: UP 0.2 percent at $122.27 per barrel
West Texas Intermediate: UP 0.2 percent at $120.93 per barrel
burs-jmb/hs
M.Davis--CPN