- 'Evacuate now, now, now': Florida braces for next hurricane
- US Supreme Court skeptical of challenge to 'ghost guns' regulation
- Sparks fly as Orban berates EU 'elites' in parliament trip
- US finalizes rule to remove lead pipes within a decade
- Solanke hungry for second England cap after seven-year wait
- Gilded canopy restored at Vatican basilica
- Zverev scrapes through, Djokovic cruises to Shanghai Masters last 16
- Trump secretly sent Covid tests to Putin: Bob Woodward book
- Gauff answers critics: 'It's hard to win all the time'
- Neural networks, machine learning? Nobel-winning AI science explained
- China says raised 'serious concerns' with US over trade curbs
- Boeing delivers 27 MAX jets in September despite strike
- German 'Maddie' suspect could be free in 2025 after cleared of other sex crimes
- Italy seek Nations League consistency as Germany continue rebuild
- From boom to budgeting as reality bites for Saudi football
- Stock markets diverge as Hong Kong sinks, oil prices fall
- US trade gap narrowest in five months as imports slip
- Stay and 'you are going to die': Florida braces for next hurricane
- England 96-1 after Salman's century lifts Pakistan to 556
- Hollywood star Idris Elba champions African cinema in Ghana
- Djokovic rolls Cobolli to make Shanghai Masters last 16
- Milan's Hernandez receives two-game suspension after referee rant
- Geoffrey Hinton, soft-spoken godfather of AI
- Ex-Barcelona and Spain great Iniesta retires aged 40
- Duo wins Physics Nobel for 'foundational' AI breakthroughs
- German 'Maddie' suspect could be free in 2025 after cleared of separate sex crimes
- China slaps provisional tariffs on EU brandy imports
- Ex-skipper Skelton eyes Wallabies November return
- Spanish great Iniesta leaves indelible legacy after retirement
- Indian Kashmir elects first regional government in a decade
- Hong Kong stocks crash, oil prices retreat on fading China boost
- Man City accuse Premier League of 'misleading' claims after legal case
- Duo wins Physics Nobel for key breakthroughs in AI
- Agha defies England as Pakistan post 515-8 in first Test
- September second-warmest on record: EU climate monitor
- Pastor wanted by US for sex trafficking to run for Philippine senate
- Mozambican writer Mia Couto dreams future leaders set an 'example'
- German 'Maddie' suspect could be free soon after cleared of separate sex crimes
- China says to take anti-dumping measures against EU brandy imports
- German suspect in 'Maddie' case cleared in separate sex crimes trial
- Israel expands offensive against Hezbollah in south Lebanon
- China stocks rally fizzles on stimulus worries amid Asia retreat
- Bangladesh's Yunus says no elections before reforms
- England strike twice as Pakistan reach 397-6 at lunch in first Test
- China stocks rally peters out on stimulus worries amid Asia retreat
- Taiwan's Foxconn says building world's largest 'superchip' plant
- Kenya's deputy president faces impeachment vote
- N. Korean soldiers 'highly likely' killed in Ukraine: Seoul
- 'Appeals Centre' to referee EU social media disputes
- US Supreme Court to hear 'ghost guns' regulation case
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Oil prices dive on weaker IMF growth forecast as US stocks rally
Oil prices plunged by more than five percent Tuesday on worries that slowing growth will dent petroleum demand, while US stocks enjoyed a solid rally following a series of weak sessions.
The catalyst for the drop in both Brent and West Texas Intermediate futures was the IMF sharply downgrading its 2022 global growth forecast to 3.6 percent, 0.8 percentage points lower than its previous estimate released in January.
Energy prices are surging, debt levels are rising and shortages remain acute, the IMF noted, as multiple crises including the Ukraine war and coronavirus pandemic fuel an acceleration of inflation.
"The economic effects of the war are spreading far and wide -- like seismic waves that emanate from the epicenter of an earthquake," IMF chief economist Pierre-Olivier Gourinchas said in the report.
The downgrade was sharper for the eurozone, which is now expected to grow by 2.8 percent instead of 3.9 percent.
The report projected US growth would be 3.7 percent, down 0.3 percent from the earlier outlook.
While European bourses pulled back, US stocks enjoyed a buoyant session, rallying after a tepid open.
The broad-based S&P 500 finished up 1.6 percent.
Analysts cited better-than-expected US housing starts data, as well as solid earnings from Johnson & Johnson and other companies.
Much of the strength also stemmed from the positioning of the market.
"It's a nice reflex rally from an oversold position," said Art Hogan, strategist at National Securities, who said the dynamics reflected a "pretty oversold market."
Still, markets remain focused on the shifting monetary policy outlook as the yield on the 10-year US Treasury note climbed above 1.9 percent.
Airline shares were solidly higher after many US carriers lifted mask requirements following a ruling from a federal judge that struck down the nationwide face-covering mandate on transportation. American Airlines, Delta Air Lines and Southwest Airlines all won at least two percent.
But Lockheed Martin lost 1.6 percent after reporting that profits and sales dipped as the defense giant cited the drag from Covid-19 restrictions on its supply chain.
- Key figures around 2050 GMT -
New York - Dow: UP 1.5 percent at 34,911.20 (close)
New York - S&P 500: UP 1.6 percent at 4,462.21 (close)
New York - Nasdaq: UP 2.2 percent at 13,619.66 (close)
London - FTSE 100: DOWN 0.2 percent at 7,601.28 points (close)
Frankfurt - DAX: DOWN 0.1 percent at 14,153.46 (close)
Paris - CAC 40: DOWN 0.8 percent at 6,534.79 (close)
EURO STOXX 50: DOWN 0.5 percent at 3,830.76 (close)
Tokyo - Nikkei 225: UP 0.7 percent at 26,985.09 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,194.03 (close)
Hong Kong - Hang Seng Index: DOWN 2.3 percent at 21,027.76 (close)
Dollar/yen: UP at 128.89 yen from 126.69 yen
Euro/dollar: UP at $1.0796 from $1.0782
Pound/dollar: DOWN at $1.2998 from $1.3019
Euro/pound: UP at 82.98 pence from 82.85 pence
Brent North Sea crude: DOWN 5.2 percent at $107.25 per barrel
West Texas Intermediate: DOWN 5.2 percent at $102.56 per barrel
burs-jmb/cs
Th.Berger--AMWN