Stocks extend Fed-induced sell-off / Photo: MOHD RASFAN - AFP
Stocks extend Fed-induced sell-off
Stock markets mostly tumbled again on Tuesday, extending losses that were sparked by last week's Federal Reserve warning that more monetary tightening was on the way.
London's FTSE 100 was down in afternoon deals after a public holiday closure the day before, while the Paris CAC 40 fell after staging a rally earlier in the day.
Wall Street indices started the morning in the green, only for the rebound to fizzle.
The Frankfurt DAX bucked the trend as it rose 0.5 percent, though lower than earlier in the day.
Most markets have been slumping since Friday after Federal Reserve chief Jerome Powell warned of more interest rate hikes to fight runaway four-decade high inflation, even at the cost of economic pain.
Oil prices tanked Tuesday on fears about a major hit to demand from any global economic slowdown -- and news of more Covid restrictions in key consumer China.
Brent North Sea crude dipped below $100 per barrel.
- Energy woes -
Central banks are scrambling worldwide to tame consumer prices that have surged higher since Russia invaded in Ukraine in late February
German inflation data showed consumer prices rose by 7.9 percent in the year to August as the ongoing energy crisis further stoked price pressures.
In Spain, the inflation rate slowed to 10.4 percent in August as fuel prices eased, but it remained elevated due to rising electricity and food prices.
The European Central Bank, which raised interest rates for the first time in over a decade in July, is expected to hike them again when it meets next week.
Natural gas prices dipped Tuesday despite jitters over supply disruptions from key producer Russia.
Europe's benchmark Dutch TTF gas contract edged down to 272.500 euros per megawatt hour, having struck a March peak late on Friday.
Many European countries are facing severe supply problems as Moscow turns off the gas taps in response to EU military and diplomatic backing for Ukraine
Russian energy giant Gazprom plans to suspend gas deliveries through the Nord Stream pipeline, which runs to Germany, for three days of "maintenance" work from Wednesday.
In France, French energy firm Engie said Tuesday that Gazprom was further slashing its gas deliveries to the company "due to a disagreement between both sides over the execution of contracts".
Elsewhere, Asian stocks indices diverged on Tuesday, winning limited support from bargain-buying.
In China, a record 96 percent on-year drop in first-half earnings from the country's largest developer Country Garden Holdings also served as a grim reminder of China's beleagured property sector.
- Key figures at around 1330 GMT -
London - FTSE 100: DOWN 0.6 percent at 7,384.94 points
Frankfurt - DAX: UP 0.5 percent at 12,962.09
Paris - CAC 40: DOWN 0.1 percent at 6,214.24
EURO STOXX 50: DOWN 0.1 percent at 3,567.30
New York - Dow: DOWN 0.6 percent at 31,921.35
Tokyo - Nikkei 225: UP 1.1 percent at 28,195.58 (close)
Hong Kong - Hang Seng Index: DOWN 0.4 percent at 19,949.03 (close)
Shanghai - Composite: DOWN 0.4 percent at 3,227.22 (close)
Euro/dollar: UP at $1.0008 from $0.9972 on Monday
Pound/dollar: DOWN at $1.1664 from $1.1709
Euro/pound: UP at 85.79 pence from 85.38 pence
Dollar/yen: UP at 138.72 yen from 138.68 yen
West Texas Intermediate: DOWN 4.84 percent at $92.31 per barrel
Brent North Sea crude: DOWN 5.05 percent at $99.78 per barrel
burs-rox/lth
Y.Hube--MP
