- Two elephants die in flash flooding in northern Thailand
- Tunisia votes with Saied set for re-election
- Too hot by day, Dubai's floodlit beaches are packed at night
- A 'forgotten' valley in storm-hit North Carolina, desperate for help
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- US trade chief defends tariff hikes when paired with investment
- EU court blocks French ban on vegetable 'steak' labelling
- Meta AI turns pictures into videos with sound
- US dockworkers return to ports after three-day strike
- DR Congo to begin mpox vaccination campaign Saturday in east
- Meta must limit data use for targeted ads: EU court
- Oil extends gains, jobs report lifts Wall Street
- US hiring soars past expectations in sign of resilient market
- As EU targets Chinese cars, European rivals sputter
- Top EU court finds against FIFA in key transfer market ruling
- Oil extends gains, Hong Kong stocks resume rally
- 'A man provides': Ukrainian miners send families away as Russia advances
- EU states greenlight extra tariffs on EVs from China
- Hong Kong stocks resume rally, oil dips after Middle East-fuelled surge
- Crude stable after Israel-Iran surge, Hong Kong stocks resume gains
- Hera spacecraft to probe asteroid deflected by defence test
- US dockworkers to head back to work after tentative deal
- After Helene's destruction, North Carolina starts to rebuild
- Dockers end three-day strike at Montreal port
- What next for OpenAI after $157 billion bonanza?
- Israel-Hamas war causes 86-percent dive in Gaza GDP: IMF
- Milan's Morata moves house after Inter-fan town mayor 'violates' privacy
- 'Devastating' storm hits Augusta National but Masters will go on
- Relief in Brazil, Asia over delay to EU deforestation rules
- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
- 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
Equities, oil prices slide on recession fears
Stock markets and oil prices slumped Tuesday as investors grow increasingly fearful that more big interest rate hikes will tip economies into deep recessions.
The mood darkened also on the worsening Ukraine war and weaker demand expectations in China.
With the focus on inflation, analysts said US consumer price index data released later this week will be crucial to the direction of risk assets.
Another big reading could spark a fresh equity selloff and a surge in the dollar.
"There is growing pessimism in the markets now and with some big data points to come from the US this week, not to mention the start of earnings season," noted Craig Erlam, analyst at OANDA trading group.
"Investors should probably brace for more volatility."
Traders had hoped that bumper rate increases by the US Federal Reserve this year would begin to drag on the economy and slow runaway prices, allowing policymakers to reduce the pace of monetary tightening.
But a forecast-beating US jobs report on Friday highlighted the tough work the country's central bank has slowing inflation from four-decade highs, and many observers warn recession is virtually inevitable.
- 'Real danger' -
World Bank chief David Malpass said there was a "real danger" of a global contraction next year, adding that the surge in the dollar was weakening the developing nations' currencies and pushing their debt to "burdensome" levels.
And JP Morgan boss Jamie Dimon told CNBC that while the US economy was holding up, it faced several headwinds including rising rates, surging inflation, Fed tightening and the Ukraine war.
He added that he saw a US recession in six to nine months, and that the S&P 500 could fall another 20 percent.
Barings strategist Christopher Smart said: "It's little wonder investors enter the week in a dreary mood, especially with headlines from Ukraine signalling a further escalation in geopolitical tensions."
Chip manufacturers globally took a pounding from new US export controls aimed at restricting China's ability to buy and make high-end chips with military applications.
The Philadelphia Stock Exchange Semiconductor Index saw its lowest close since late 2020, while Bloomberg News reported that $240 billion had been slashed from companies' market values worldwide.
- Dollar dips -
Taipei led the losses in Asia -- diving more than four percent -- as chip giant TSMC plunged 8.3 percent, while a hefty selloff in Samsung Electronics dragged Seoul down 1.6 percent. Tokyo was also sharply lower owing to a hit to tech firms.
All three markets had been closed Monday and were reacting to Friday's US announcement for the first time.
On currency markets, the dollar dipped after recent strong gains as the United States heads the monetary tightening drive.
The pound nevertheless remained under pressure despite the Bank of England unveiling further measures to calm markets rocked by a UK budget, saying it would increase purchases of government bonds.
"Investors fear that the UK government is borrowing too much and that it won't be able to balance its books," said City Index and FOREX.com analyst Fawad Razaqzada.
Oil prices fell sharply, with concerns about Chinese demand front and centre.
"Covid cases are picking up in the country, and the Chinese Communist Party's newspaper, the People's Daily, ran a commentary saying the Covid Zero policy is 'sustainable', indicating that the country is likely to keep following it if not double down," said Stephen Innes at SPI Asset Management.
- Key figures around 1330 GMT -
London - FTSE 100: DOWN 0.8 percent at 6,903.83 points
Frankfurt - DAX: DOWN 0.6 percent at 12,198.54
Paris - CAC 40: DOWN 0.4 percent at 5,815.38
EURO STOXX 50: DOWN 0.6 percent at 3,336.12
New York - Dow: DOWN 0.3 percent at 29,114.89
Tokyo - Nikkei 225: DOWN 2.6 percent at 26,401.25 (close)
Hong Kong - Hang Seng Index: DOWN 2.2 percent at 16,832.36 (close)
Shanghai - Composite: UP 0.2 percent at 2,979.79 (close)
Euro/dollar: UP at $0.9716 from $0.9708 on Monday
Pound/dollar: UP at $1.1085 from $1.1059
Euro/pound: DOWN at 87.74 pence from 87.76 pence
Dollar/yen: DOWN at 145.68 yen from 145.72 yen
West Texas Intermediate: DOWN 2.0 percent at $89.03 per barrel
Brent North Sea crude: DOWN 1.8 percent at $94.45 per barrel
burs-rl/imm
A.Levy--CPN