- Climate change, economics muddy West's drive to curb Chinese EVs
- Argentina's Milei vetoes university budget after huge protests
- TotalEnergies plans to grow oil and gas production until 2030
- 2024 Nobels offer glimmer of hope as global crises mount
- Tokyo rallies on weak yen, Hong Kong reverses after surge
- Tunisia readies for vote as incumbent Saied eyes victory
- High childcare costs in US weigh on women's employment
- US voters seek help with crushing childcare costs
- Taiwan shuts down for second day as Typhoon Krathon to land
- Supercharged storms: how climate change amplifies cyclones
- Biden official urges talks as US port strike enters second day
- Huge protests in Argentina over public university cuts
- 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
SCS | -2.56% | 12.87 | $ | |
CMSC | 0.04% | 24.78 | $ | |
RIO | -0.48% | 70.82 | $ | |
CMSD | -0.04% | 24.93 | $ | |
NGG | -1.85% | 68.78 | $ | |
RBGPF | 100% | 59.99 | $ | |
BCE | -1.13% | 34.44 | $ | |
RYCEF | 0.14% | 6.91 | $ | |
BTI | -1.33% | 35.97 | $ | |
VOD | -2.16% | 9.74 | $ | |
RELX | -0.11% | 47.29 | $ | |
BCC | -1.33% | 139.53 | $ | |
AZN | 1.14% | 79.58 | $ | |
GSK | -2.15% | 39.45 | $ | |
JRI | -1.12% | 13.38 | $ | |
BP | 0.86% | 32.37 | $ |
Stocks, oil prices plunge on recession fears
Equities and oil prices tumbled Wednesday after a brief respite from last week's painful rout across world markets, with recession fears building as central banks hike interest rates to combat decades-high inflation.
While Asia, Wall Street and Europe all enjoyed healthy gains Tuesday, analysts warned the downbeat mood on trading floors means the selling is unlikely to end any time soon.
Federal Reserve boss Jerome Powell's two-day testimony to Congress this week will be pored over for an idea about officials' plans for fighting runaway prices, which are being fanned by supply chain snarls, China's lockdowns and the war in Ukraine.
Most observers expect the Fed to aggressively hike US interest rates several more times this year having recently carried out the sharpest lift in almost 30 years.
The prediction is handing support to the dollar, which pushed the yen briefly to a fresh 24-year low Wednesday.
The Bank of Japan is holding back from lifting interest rates, in sharp contrast to other major central banks.
"Swiftly rising interest rates act as a vacuum for economic growth, and this isn't lost on the market today," noted Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
"This is a darker day for global markets than has been seen in a while. Serious questions remain about the resilience of consumers, and it appears traders are bracing for a harsh hand where interest rates are concerned."
Oil prices were feeling the heat from recessionary fears, with both main contracts tanking more than five percent at one point.
Crude and gas prices have soared in recent months after major economies lifted pandemic lockdowns and following the invasion of Ukraine by major energy producer Russia.
Surging energy costs are fuelling global inflation, with official data Wednesday showing the British annual rate hitting a fresh 40-year high above nine percent.
In the United States, President Joe Biden will Wednesday ask Congress to suspend the federal gas tax for three months as skyrocketing prices cause widespread anger among Americans just months before crucial mid-term elections.
The White House wants to discontinue the 18 cents per gallon tax until September and will call on state governments to do the same.
A senior administration official noted that US gas prices -- averaging near $5 per gallon -- had jumped almost $2 since Russian President Vladimir Putin began building up forces on the Ukrainian border earlier this year.
- Key figures at around 1115 GMT -
Brent North Sea crude: DOWN 4.0 percent at $110.10 per barrel
West Texas Intermediate: DOWN 4.5 percent at $104.55 per barrel
London - FTSE 100: DOWN 1.4 percent at 7,049.87 points
Frankfurt - DAX: DOWN 2.0 percent at 13,026.66
Paris - CAC 40: DOWN 1.8 percent at 5,860.57
EURO STOXX 50: DOWN 1.8 percent at 3,429.75
Tokyo - Nikkei 225: DOWN 0.4 at 26,149.55 (close)
Hong Kong - Hang Seng Index: DOWN 2.6 percent at 21,008.34 (close)
Shanghai - Composite: DOWN 1.2 percent at 3,267.20 (close)
New York - Dow: UP 2.2 percent at 30,530.25 (close)
Euro/dollar: DOWN at $1.0519 from $1.0535 late Tuesday
Pound/dollar: DOWN at $1.2247 from $1.2273
Euro/pound: UP at 85.88 pence from 85.80 pence
Dollar/yen: DOWN at 136.08 yen from 136.64 yen
M.P.Jacobs--CPN