- Air France says jet flew over Iraq during Iran attack on Israel
- Activists target Picasso work to protest Israel arms sales
- Let 'Emily in Paris' remain in Paris, Macron says
- Global stocks diverge as Chinese shares tumble
- Time runs out in Florida to flee Hurricane Milton
- Chad issues warning ahead of more devastating floods
- Record-breaking Root helps England dominate Pakistan in first Test
- German govt sees economy shrinking again in 2024
- Ex-UK soldier denies passing secrets to Iran intelligence
- Creator's death no bar to new 'Dragon Ball' products
- Three Kosovo Serbs on trial over 'secession plot' attack
- Van Gogh museum to launch Impressionism show
- French minister ups ante in Eiffel Tower Olympic rings row
- Japan PM calls snap election to 'create a new Japan'
- German police shut pro-Palestinian camp over Thunberg invite
- Chinese stocks tumble on lack of fresh stimulus
- Trio wins chemistry Nobel for protein design, prediction
- SE Asian summit urges end to Myanmar violence but struggles for solutions
- Wimbledon replaces line judges with electronic system
- Record-breaking Root hits hundred as England power to 351-3
- Record-breaking Root hits hundred as England's power to 351-3
- Sabalenka relishes 'much-needed' tennis rivalry with Swiatek
- Liverpool goalkeeper Alisson set for six weeks out
- Taylor Swift got police escort to London gigs after Austria terror plot
- Cook tips Root to break Tendulkar's all-time runs record
- British skull auction sparks Indian demand for return
- Joe Root: England's elegant Test record-breaker
- Braving war: Lebanon's 'badass' airline defies odds
- Klopp to return as head of Red Bull football operations
- Hezbollah strikes Israel, says it foiled Israeli incursions
- Jurgen Klopp to return as head of Red Bull football operations
- Sinner to face Medvedev in Shanghai Masters quarter-finals
- US weighs Google breakup in landmark trial
- Record-breaking Root guides England to 232-2 in reply to Pakistan's 556
- Japan PM dissolves parliament for 'honeymoon' snap election
- Chinese stocks tumble on stimulus upset, Asia tracks Wall St higher
- 7-Eleven owner confirms new takeover offer from Couche-Tard
- Goodbye Tito? Tomb at risk as Serbs argue over Yugoslav legacy
- Restoration experts piece together silent Sherlock Holmes mystery
- Sinner avoids Shanghai deja vu with assured Shelton win
- Pyongyang to 'permanently' shut border with South Korea
- Trumpet star Marsalis says jazz creates 'balance' in divided world
- No children left on Greece's famed but emptying island
- Nepali becomes youngest to climb world's 8,000m peaks
- Climate change made deadly Hurricane Helene more intense: study
- A US climate scientist sees hurricane Helene's devastation firsthand
- Padres edge Dodgers, Mets on the brink
- Can carbon credits help close coal plants?
- With EU funding, Tunisian farmer revives parched village
- Sega ninja game 'Shinobi' gets movie treatment
GSK | -0.03% | 38.01 | $ | |
CMSD | -0.17% | 24.81 | $ | |
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NGG | -0.43% | 65.62 | $ | |
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CMSC | 0.28% | 24.64 | $ | |
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JRI | 0.45% | 13.22 | $ | |
BCC | 0.87% | 143.27 | $ | |
BCE | 0.27% | 33.6 | $ | |
RELX | -0.18% | 46.555 | $ | |
BP | -0.69% | 31.81 | $ | |
RBGPF | -2.48% | 59.33 | $ | |
VOD | 0.26% | 9.685 | $ |
Global stocks rise, digesting US rate stance as oil prices dip
Stock markets made gains and oil prices steadied Tuesday as investors tracked developments in the war in Ukraine and digested the US Federal Reserve chief's warning of more aggressive interest rate hikes.
Crude futures had soared more than seven percent Monday amid supply worries as European leaders debated banning imports from Russia, but retreated modestly on Tuesday.
Despite the economic and political fallout from the Ukraine conflict, Wall Street stocks regained their swagger, finishing solidly higher in the wake of Monday's pullback that came after Federal Reserve Chair Jerome Powell said policymakers may have to raise rates more aggressively to combat inflation.
Main European markets also finished in the green Tuesday, Frankfurt, Paris and Milan all adding one percent while London was half a percent to the good at the close.
The market "seems to be shrugging off the inflation story and hawkish Fed," said Neil Wilson, chief market analyst at Markets.com.
Chris Beauchamp, chief market analyst at online trading platform IGA, said "equities have found the strength to move higher once more ... buoyed by Powell's confident outlook" Monday, when he said the economy has sufficient strength to withstand higher interest rates.
"Of course, if Powell’s optimism is misplaced then the reckoning will be unpleasant, but for now stock markets are still content to move higher," Beauchamp added.
Ukrainian President Volodymyr Zelensky renewed an offer of direct peace talks with Russian counterpart Vladimir Putin late Monday, while US President Joe Biden warned Russia that it will pay a "severe price" if it uses chemical or biological weapons in Ukraine.
"It seems whatever economic weakness that is starting to arise is being shrugged off as hope grows that Russia has lost momentum in the war in Ukraine," Oanda's Edward Moya said.
"The impact from this war is anyone's guess, but what we do know is that the longer it lasts, the greater the stagflation risk will be for the global economy."
In Asia, Hong Kong's main stocks index ended sharply higher, resuming last week's rally sparked by China's pledge to support the country's markets and indicated a tech crackdown was nearing an end.
Back on Wall Street, consumer discretionary stocks led the industrial sectors following results from Nike that topped analyst expectations.
The sporting giant rose 2.2 percent as strong consumer demand and good product pricing offset a hit from lower China sales.
"Nike is a pretty good bellwether for consumer stocks," said Art Hogan, chief strategist at National Securities. "Yesterday was a bit of an overreaction."
- Key figures around 2040 GMT -
New York - DOW: UP 0.7 percent at 34,807.46 (close)
New York - S&P 500: UP 1.1 percent at 4,511.61 (close)
New York - Nasdaq: UP 2.0 percent at 14,108.82 (close)
London - FTSE 100: UP 0.5 percent at 7,476.72 (close)
Frankfurt - DAX: UP 1.0 percent at 14,473.20 (close)
Paris - CAC 40: UP 1.2 percent at 6,659.41 (close)
EURO STOXX 50: UP 1.1 percent at 3,926.12 (close)
Tokyo - Nikkei 225: UP 1.5 percent at 27,224.11 (close)
Hong Kong - Hang Seng Index: UP 3.2 percent at 21,889.28 (close)
Shanghai - Composite: UP 0.2 percent at 3,259.86 (close)
Brent North Sea crude: DOWN 0.1 percent at $115.48 per barrel
West Texas Intermediate: DOWN 0.3 percent at $111.76 per barrel
Euro/dollar: UP at $1.1033 from $1.1016 Monday
Pound/dollar: UP at $1.3260 from $1.3169
Euro/pound: DOWN at 83.16 pence from 83.65 pence
Dollar/yen: UP at 120.82 yen from 119.47 yen
D.Cunningha--AMWN