- 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
CMSD | -0.04% | 24.93 | $ | |
CMSC | 0.04% | 24.78 | $ | |
BCC | -1.33% | 139.53 | $ | |
SCS | -2.56% | 12.87 | $ | |
BCE | -1.13% | 34.44 | $ | |
NGG | -1.85% | 68.78 | $ | |
RIO | -0.48% | 70.82 | $ | |
JRI | -1.12% | 13.38 | $ | |
GSK | -2.15% | 39.45 | $ | |
RBGPF | -2.18% | 59.5 | $ | |
AZN | 1.14% | 79.58 | $ | |
RYCEF | -0.43% | 6.9 | $ | |
BTI | -1.33% | 35.97 | $ | |
VOD | -2.16% | 9.74 | $ | |
BP | 0.86% | 32.37 | $ | |
RELX | -0.11% | 47.29 | $ |
Stocks mostly fall as markets await aggressive Fed action
Global equity markets mostly fell on Tuesday as markets awaited a key Federal Reserve decision amid rising expectations for an even tougher rate hike than previously telegraphed.
Panic has swept through trading floors since data on Friday showed US consumer prices rising at their fastest pace in decades on surging energy and food costs caused by the Ukraine war and supply chain snarls.
Investors are now bracing for the Fed's interest rate decision on Wednesday as the central bank struggles to walk a fine line between reining in inflation and trying to keep the economy on track.
"While there is no doubt that inflation is a considerable challenge for the US at this point, slamming on the brakes too hard risks pushing the economy off its track," said Tai Hui, chief market strategist for Asia at JP Morgan Asset Management.
The inflation reading has raised expectations the US central bank could raise rates by a hefty 75 basis points, higher than its previous 0.5-percentage-point hike -- something futures markets now consider likely.
"It looks like it's going to be a 75 basis point hike," said Quincy Krosby, chief equity strategist of LPL Financial. "We haven't seen any sign that the Fed wanted to clarify this expectation. In fact, if the Fed stayed with a 50 basis point hike, the market could be disappointed."
Krosby said the Fed's sharp increase in lending rates will dampen economic growth but the central bank has little choice at this point.
"The wake-up call was the CPI on Friday and the preliminary consumer confidence," she said. "The Fed got the message. It needs to maintain its credibility."
Recession fears sent Wall Street plunging on Monday, with the broad-based S&P 500 stocks index sinking into a bear market, with a drop of more than 20 percent from its recent peak.
After opening higher on Tuesday, US stocks weakened thereafter. The Dow and S&P 500 finished lower, while the Nasdaq mustered modest gains.
London, Paris, Frankfurt and most Asian equities closed in the red.
Cryptocurrencies have mirrored the falls in the stock markets, with bitcoin tumbling to an 18-month low under $23,000.
Digital currency exchange Coinbase said Tuesday it will lay off 18 percent of staff, citing tight economic conditions and an overly rapid expansion.
- Key figures at around 2030 GMT -
New York - Dow: DOWN 0.5 percent at 30,364.83 (close)
New York - S&P 500: DOWN 0.4 percent at 3,735,48 (close)
New York - Nasdaq: UP 0.2 percent at 10,828.35 (close)
Frankfurt - DAX: DOWN 0.9 percent at 13,304.39 (close)
Paris - CAC 40: DOWN 1.2 percent at 5,949.84 (close)
London - FTSE 100: DOWN 0.3 percent at 7,187.46 (close)
EURO STOXX 50: DOWN 0.8 percent at 3,475.18 (close)
Tokyo - Nikkei 225: DOWN 1.3 percent at 26,629.86 (close)
Hong Kong - Hang Seng Index: FLAT at 21,067.99 (close)
Shanghai - Composite: UP 1.0 percent at 3,288.91 (close)
Euro/dollar: UP at $1.0420 from $1.0409 late Monday
Pound/dollar: DOWN at $1.1993 from $1.2134
Euro/pound: UP at 86.84 pence from 85.79 pence
Dollar/yen: UP at 135.33 yen from 134.42 yen
Brent North Sea crude: DOWN 0.9 percent at $121.97 per barrel
West Texas Intermediate: DOWN 2.0 percent at $118.93 per barrel
burs-jmb
D.Philippon--CPN