- Djokovic hails Nadal 'legacy' as Alcaraz in 'shock' over retirement
- Obama hits campaign trail for Harris
- Delta eyes Election Day travel pullback as profits climb
- Djokovic tells Nadal: 'Your legacy will live forever'
- Ethel Kennedy, wife of RFK, dead at 96
- Zelensky denies ceasefire with Russia under discussion on trip
- Florida battered by hurricane, floods but spared 'worst-case scenario'
- After long fight for glory, Nadal leaves with a legacy of memories
- Home hopes Zheng and Wang through to last-eight in Wuhan Open
- UN peacekeepers say Israel fired on Lebanon HQ, injuring 2
- UK's William and Kate in first joint public engagement since cancer treatment
- Alcaraz out as top players pay tribute to Nadal at Shanghai Masters
- Racing's Farrell 'not thinking' about British and Irish Lions
- Alcaraz, Sinner pay tribute to 'unbelievable' Nadal at Shanghai Masters
- Over 200 women in legal talks with Harrods over Fayed abuse claims
- After K-pop, K-novels? South Korean Nobel win sparks joy, hope at home
- After Nadal exit, Djokovic left to rage against dying of the light
- A very stiff breeze: BBC says sorry for 20,000 kph wind forecast
- Triple centurion Brook happy to break Dad's club record
- Zelensky touts 'victory plan' against Russia in Macron talks
- Musk finally unveiling his long-promised robotaxi
- UN peacekeepers accuses Israel of firing on Lebanon HQ
- London's Frieze art fair goes potty for ceramics
- Southgate taking year out from coaching
- US, Europe stocks fall on US inflation data
- Zelensky meets Macron in Paris as part of European tour
- Hurricane Milton shreds Florida stadium roof
- UN probe accuses Israel of seeking to 'destroy' Gaza healthcare
- US consumer inflation eases to 2.4% in September
- England in sight of victory after Brook's triple hundred
- Juventus readmitted to ECA after failed Super League revolt
- World number 2 Alcaraz knocked out of Shanghai Masters by Machac
- Leaders of Egypt, Eritrea, Somalia meet amid regional tensions
- Klopp's Red Bull decision 'ruined life's work' say Dortmund fans
- Han Kang wins South Korea's first literature Nobel
- S. Korea's Nobel winner Han Kang a modest, thought-provoking writer
- Hurricane Milton tornadoes kill four in Florida amid rescue efforts
- The almost impossible job: Beating Rafael Nadal at the French Open
- New French government faces key test with budget plan
- Rescuers say Israeli strike on Gaza school kills 28
- Italy's ex-world champion gymnast Ferrari announces retirement
- Zelensky talks 'victory plan' in meeting with Starmer, Rutte
- South Korea's Han Kang wins literature Nobel
- Federer lauds retiring Nadal's 'incredible achievements'
- Ikea posts fall in annual sales after lowering prices
- Australia beat China 3-1 to resurrect World Cup campaign
- Stock markets diverge, oil gains after China rebounds
- Nadal defied injury woes in record-breaking career
- Nadal v Djokovic, French Open, 2006: Chapter One in epic rivalry
- World can't 'waste time' trading climate change blame: COP29 hosts
CMSC | 0.16% | 24.56 | $ | |
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RYCEF | 0% | 6.9 | $ | |
BP | 1.05% | 32.32 | $ | |
RELX | -0.61% | 46.425 | $ | |
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GSK | -2.61% | 39.215 | $ | |
RIO | 0.13% | 66.435 | $ | |
RBGPF | 4.03% | 63.35 | $ | |
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BCC | -1.69% | 140.02 | $ | |
CMSD | 0.08% | 24.7 | $ | |
JRI | -0.05% | 13.214 | $ | |
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BCE | -1.54% | 32.805 | $ |
Equities sink on Middle East woes, US rate cut doubts
Global stocks mostly sank Friday after oil prices topped $91 a barrel, as worries intensified that Israel's war with Hamas could spiral into a broader conflict with major crude producer Iran.
Sentiment was further rocked by fears the US Federal Reserve might not cut interest rates as much as previously expected, with the focus now on upcoming key jobs data.
Oil steadied after international benchmark Brent bulldozed its way overnight to a five-month peak of $91.30 and New York's WTI struck a similar high on simmering geopolitical woes in the crude-producing Middle East.
The dollar held steady before the US nonfarm payrolls report, which is a key indicator of the health of the world's largest economy.
- 'Escalation of tensions' -
Optimism was at a premium on trading floors after the deadly strike on the Iranian consulate in Damascus, which Tehran blamed on Israel and threatened retaliation.
"The risk-off tone to markets is driven by an escalation of tensions in the Middle East, after Israel said that it had increased preparations for a retaliatory strike by Iran after Israeli forces attacked Iran's diplomatic compound in Syria earlier this week," said XTB analyst Kathleen Brooks.
"Ever since the Israel/Hamas war started in October, the bigger risk for geopolitical security and thus for financial markets, has been a war between Iran and Israel," she said.
That prospect sent prices up more than one percent Thursday, stoking fears of elevated global inflation that could delay rate reductions.
Friday's stock sell-off followed a plunge across the board on Wall Street that analysts said could also be partially blamed on profit-taking after a months-long rally that has seen several indexes hit records this year.
- 'Storm clouds' -
Minneapolis Fed chief Neel Kashkari said Thursday that there was a chance of no US rate cuts this year, sending Wall Street diving -- and with shock waves reverberating across Asia and Europe on Friday.
"Storm clouds circled equity markets as investors started to fret about when interest rates would be cut given heightened inflationary pressures from oil... and negative comments from a key figure," said Russ Mould, investment director at stockbroker AJ Bell.
"Kashkari questioned if the US central bank needed to cut rates at all this year if we continued to see sticky inflation.
"On paper, the argument in favour of holding rates is growing by the day even though investors would dearly love to see cut after cut to relieve the financial pressures on consumers and businesses."
Confidence in three Fed cuts this year, beginning in June, is being tested by a string of recent data indicating the US economy remains in rude health, while bank officials have done little to soothe concerns.
- Key figures around 1050 GMT -
London - FTSE 100: DOWN 0.9 percent at 7,905.43 points
Paris - CAC 40: DOWN 1.4 at 8,039.00
Frankfurt - DAX: DOWN 1.4 percent at 18,138.99
EURO STOXX 50: DOWN 1.4 percent at 4,999.38
Tokyo - Nikkei 225: DOWN 2.0 percent at 38,992.08 (close)
Hong Kong - Hang Seng Index: FLAT at 16,723.92 (close)
Shanghai - Composite: Closed for a holiday
New York - Dow: DOWN 1.4 percent at 38,596.98 (close)
Dollar/yen: UP at 151.36 yen from 151.22 yen on Thursday
Euro/dollar: DOWN at $1.0836 from $1.0840
Pound/dollar: DOWN at $1.2634 from $1.2641
Euro/pound: UP at 85.76 pence from 85.73 pence
Brent North Sea Crude: DOWN 0.1 percent at $90.71 per barrel
West Texas Intermediate: DOWN 0.2 percent at $86.46 per barrel
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Th.Berger--AMWN