- NBA and Nike extend partnership deal for 12 years
- Israel strikes 300 Hezbollah targets as US urges war's end
- Tourist dreams turn sour after Cuba lights go off
- Italy PM seeks to save Albanian migrant deal amid spat with judges
- Tagovailoa returns to NFL practice Wednesday after concussion
- US infant mortality spiked after right to abortion overturned: study
- Blinken back to Middle East to push for Gaza truce
- Neymar returns for Al Hilal in Al Ain thriller
- TGL set for January start as Woods-McIlroy might meet Jan. 27
- US Grand Prix - three things we learned
- Welsh rugby's future more important to Gatland than saving his job
- Venezuela arrests ex-oil minister accused of US links
- President Biya lands back in Cameroon after health rumours
- Watson out for NFL season with ruptured Achilles tendon
- Disney expects to name Iger's successor in early 2026
- Trump tours storm damage, Harris woos moderates as US vote looms
- Power restored to half of Cuban capital after nationwide blackout: state media
- Emery wants to 'break barriers' at transformed Aston Villa
- Hezbollah-linked financial firm an economic lifeline for Lebanese
- London trial probes 2015 Brazil mine disaster
- Police in Mozambique disperse vote protest
- Ancelotti wants goals over pressing from Madrid star Mbappe
- Major crypto, diamond fraud trial opens in France
- Electricity restored to 50% of Havana after nationwide blackout: Cuba state media
- Stock markets slide, oil jumps as China cuts rates
- How much aid is getting into Gaza?
- King Charles caps Australia trip with Opera House bash
- England's Buttler out of West Indies ODI series
- Moldova president hails EU referendum win after Russia meddling claims
- French govt takes new blows over deal to sell painkiller maker to US fund
- US wants end to Israel-Hezbollah war 'as soon as possible'
- Van Dijk talking to 'right people' over Liverpool contract
- Vietnam's top leader pushes anti-corruption fight
- Arteta urges Arsenal to use Bournemouth 'pain' against Shakhtar
- Rabada fastest to 300th Test wicket, as Bangladesh all out for 106
- Stock markets mostly fall, oil jumps as China cuts rates
- France bristles at painkiller maker's sale to US fund
- Moldova narrowly votes for EU membership amid fraud claims
- Erdogan rival Gulen dies in exile at 83
- Man Utd's Ten Hag relishing Europa League clash with Mourinho
- Amnesty says migrant workers exploited at Carrefour Saudi stores
- Fethullah Gulen: ex-Erdogan ally who became public enemy number one
- Rabada takes 300th Test wicket as Bangladesh all out for 106
- Seoul demands 'immediate withdrawal' of North Korean troops in Russia
- WHO to evacuate 1,000 Gazan women, children for urgent medical care
- Israel bombs Hezbollah-linked finance group in Lebanon
- Erdogan's rival Fetullah Gulen dies in exile aged 83
- Gauff-led USA pitted with Canada at season-opening United Cup
- Cuban leader warns against unrest over nationwide blackout
- Asian markets mixed as traders digest China rate cut
RBGPF | 1% | 61.11 | $ | |
CMSC | -0.53% | 24.65 | $ | |
RYCEF | -0.68% | 7.4 | $ | |
SCS | -0.93% | 12.89 | $ | |
BTI | -0.73% | 34.25 | $ | |
RIO | -0.63% | 64.95 | $ | |
AZN | -1.06% | 77.44 | $ | |
GSK | -1.02% | 38.16 | $ | |
BP | 0.44% | 31.47 | $ | |
RELX | -1.13% | 47.63 | $ | |
VOD | -1.35% | 9.63 | $ | |
BCE | -0.45% | 33.39 | $ | |
NGG | -1.45% | 67.03 | $ | |
BCC | -2.78% | 137.9 | $ | |
CMSD | -0.68% | 24.87 | $ | |
JRI | -0.53% | 13.15 | $ |
Stock markets slide, oil jumps as China cuts rates
Major stock markets mostly dropped Monday on profit-taking and oil prices jumped as traders weighed fresh interest-rate cuts from China's central bank aimed at reigniting the world's second-biggest economy.
Another record session Friday on Wall Street failed to carry over into the new week and inspire a similar rally elsewhere, as main equity indices mostly moved lower.
"The weaker (but not weak) disposition is flowing from a posture of strength in the major indices that has invited some selling interest after some big gains," Briefing.com analyst Patrick O'Hare said in a note to clients.
Haven investment gold reached a new all-time high on geopolitical concerns and uncertainty over the upcoming US election, analysts said.
But "no matter how one looks at things this morning, the overarching point is that there still isn't a rush for the exits," added O'Hare.
Oil prices, which tumbled more than eight percent last week, also won support from Middle East unrest, as well as from hopes of increased demand from China -- the world's top importer of crude.
"The idea is that the move (on Chinese rates) will encourage lending and spending and help mend the ailing property market," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"But there are still expectations that further fiscal stimulus will be needed."
China's central bank on Monday said it had slashed two key interest rates to all-time lows as part of an official drive to revive spending and achieve an five percent annual economic growth target.
The move comes after figures last week showed China's economy expanded at its slowest quarterly pace since the start of 2023, but still better than forecast.
Beijing has since last month unveiled economy reviving measures, including rate cuts, an easing of home-buying rules and pledges to support equity markets.
The announcements inspired a blockbuster rally in mainland and Hong Kong stocks, but some gains have been erased after a series of disappointing news conferences that failed to provide any detail or meaningful measures.
"Officials are gradually ramping up support to kick-start the economy -- but the will-they-won't-they of announcements has made the process a rollercoaster for markets," Moody's Analytics said Monday.
But Trade Nation analyst David Morrison said the oil market's momentum remains to the downside.
"Last week, OPEC+ and the US Energy Information Administration (EIA) yet again downgraded their forecasts for oil demand growth, citing China’s economic slowdown as the prime reason for the bearish view," he said.
In foreign exchange, the dollar rose against other major currencies.
"The US dollar continues to find some love against the other majors," said Morrison.
"This comes as probabilities shift towards a slowdown in monetary policy easing from the Federal Reserve, and the possibility of a quicker pace of rate cuts from both the European Central Bank and the Bank of England," he added.
- Key figures around 1330 GMT -
New York - Dow: DOWN less than 0.1 percent at 43,238.86 points
New York - S&P 500: DOWN 0.1 percent at 5,857.10
New York - Nasdaq Composite: DOWN 0.2 percent at 18,456.51
London - FTSE 100: FLAT at 8,357.06
Paris - CAC 40: DOWN 0.5 percent at 7,577.98
Frankfurt - DAX: DOWN 0.6 percent at 19,541.65
Tokyo - Nikkei 225: DOWN 0.1 percent at 38,954.60 (close)
Hong Kong - Hang Seng Index: DOWN 1.6 percent at 20,478.46 (close)
Shanghai - Composite: UP 0.2 percent at 3,268.11 (close)
Euro/dollar: DOWN at $1.0855 from $1.0868 on Friday
Pound/dollar: DOWN at $1.3025 from $1.3047
Dollar/yen: UP at 150.02 yen from 149.45 yen
Euro/pound: UP at 83.35 pence from 83.30 pence
West Texas Intermediate: UP 2.0 percent at $70.04 per barrel
Brent North Sea Crude: UP 1.7 percent at $74.31 per barrel
burs-rl
F.Bennett--AMWN