- 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
- 'Broken' news industry faces uncertain future
- On remote Greek island, migratory birds offer climate clues
- Taken from mother by nuns, victim seeks answers as pope visits Belgium
- China cuts amount banks hold in reserve to boost lending
- Hong Kong, Shanghai extend surge as China optimism boosts markets
- Vietnam president reiterates support for Cuba during official visit
- Drought reduces Amazon River in Colombia by as much as 90%: report
- Stay or go? Pacific Islanders face climate's grim choice
- Florida bracing for 'unsurvivable' Hurricane Helene
- Poverty rises to over 52 percent in Milei's Argentina
- Chloe's see-through look may not be for Kamala Harris
- Champagne houses abuzz over English sparkling wine
- Macron, Trudeau pledge to work for 'decarbonized' economies
- Hurricanes, storms, typhoons... Is September wetter than usual?
- China stimulus, tech optimism boost stock markets
- 'Unsurvivable' Hurricane Helene races towards Florida
- Macron meets Trudeau in Canada as both face political setbacks
- South Korea surges in UN innovation index
- Chloe's see-through look may not be for Kamala
- Floods threaten Niger's historic 'gateway to the desert'
- China economy hopes boost global equities
- Ubisoft shares sink after 'Assassin's Creed' delay
- German economy to shrink again in 2024: think tanks
- Hong Kong's New World Development replaces CEO Adrian Cheng
- Swiss central bank cuts rate again amid strong franc worries
- Germany's BASF to focus on 'core units' in major overhaul
- China admits economy facing new 'problems', vows to fix property sector
- Stock markets boosted by China hopes, tech rally
Oil hits seven-year highs on recovery hopes, unrest
Oil prices hit their highest levels in more than seven years Tuesday, driven in part by hopes of a global economic recovery that would ramp up demand.
Stock markets however headed south, with US Treasury yields surging on expectations the Federal Reserve will have to unveil several interest rate hikes to tackle a worrying spike in inflation, leading the Dow to finish 1.5 percent lower on its first day back after a long holiday weekend.
European crude benchmark Brent North Sea reached $88.13 per barrel, while the US West Texas Intermediate contract hit $85.74 -- the highest levels since October 2014 -- before easing slightly in later trading.
Expectations of Fed tightening continued to support the dollar.
A drone attack on Monday in Abu Dhabi claimed by Yemen's Huthi rebels, which triggered a fuel tank blast that killed three people, also supported prices.
The group warned civilians and foreign firms in the United Arab Emirates to avoid "vital installations," raising concerns about supplies from the crude-rich region.
"The suspected drone attack in Abu Dhabi underscores the ongoing threat against civilian and energy infrastructure in the region amid heightened regional tensions," said Torbjorn Soltvedt at risk intelligence company Verisk Maplecroft.
"Reports of damage to fuel trucks and storage will concern oil market watchers, who are also keeping a close eye on the trajectory of ongoing nuclear talks between the US and Iran," he added.
OANDA analyst Craig Erlam said OPEC nations and other key producers were struggling to meet targets to lift output by 400,000 barrels a month, which added to the upward pressure.
"The evidence suggests it's not that straightforward and the group is missing the targets by a large margin after a period of underinvestment and outages," he noted.
"That should continue to be supportive for oil and increase talk of triple-figure prices."
Hopes for more monetary easing by major consumer China to reinforce its stuttering economy were also seen as a key support for the oil market.
- Eye on earnings -
Following an almost uninterrupted rally since the early days of the pandemic, stock markets are showing signs of levelling out as global finance chiefs shift from economy-boosting largesse to measures aimed at reining in inflation.
Those fears drove global bond yields up on Tuesday, with German bund yields coming close to touching zero percent, their highest level since 2019.
"The move higher also raises the prospect that the European Central Bank won't be able to hold its line of no rate rises this year," said CMC Markets analyst Michael Hewson.
Still, equities are expected to enjoy further gains in 2022 as countries reopen and people grow more confident about travel, assuming concerns ease over the Omicron coronavirus variant.
Analysts are also watching the corporate earnings season that is underway, with hopes that firms can match their stellar performances from last year.
Shares in video game publisher Activision Blizzard, maker of blockbuster titles including "Call of Duty", closed 25.9 percent higher after Microsoft announced a $69 billion buyout.
Shares in Microsoft slid 2.4 percent by the end of trading.
"This is a big step up with Microsoft getting in on the ground floor when it comes to creating as well as overseeing content on its own gaming platform," said Hewson.
Microsoft's Xbox console makes it a major player in the gaming industry, even if it trails far behind Sony's PlayStation.
- Key figures around 2150 GMT -
Brent North Sea crude: UP 1.2 percent at $87.51 per barrel
West Texas Intermediate: UP 1.9 percent at $85.43 per barrel
New York - DOW: DOWN 1.5 percent at 35,368.47 (close)
New York - S&P 500: DOWN 1.8 percent at 4,577.11 (close)
New York - Nasdaq: DOWN 2.6 percent at 14,506.90 (close)
London - FTSE 100: DOWN 0.6 percent at 7,563.55 (close)
Frankfurt - DAX: DOWN 1.0 percent at 15,772.56 (close)
Paris - CAC 40: DOWN 0.9 percent at 7,133.83 (close)
EURO STOXX 50: DOWN 1.0 percent at 4,257.82 (close)
Tokyo - Nikkei 225: DOWN 0.3 percent at 28,257.25 (close)
Hong Kong - Hang Seng Index: DOWN 0.4 percent at 24,112.78 (close)
Shanghai - Composite: UP 0.8 percent at 3,569.91 (close)
Euro/dollar: DOWN at $1.1325 from $1.1407 late Monday
Pound/dollar: DOWN at $1.3598 from $1.3652
Euro/pound: DOWN at 83.28 pence from 83.55 pence
Dollar/yen: UP at 114.60 yen from 114.58 yen
burs-imm/cs/sst
Y.Jeong--CPN