- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Djokovic proves staying power as progresses to Shanghai semi-finals
- Hurricane Milton leaves at least 16 dead as Florida cleans up
- Britain face 'ultimate challenge' in America's Cup duel with New Zealand
- Lebanon calls for 'immediate' ceasefire in Israel-Hezbollah war
- Nihon Hidankyo: Japan's A-bomb survivors awarded Nobel
- Thunberg leads pro-Palestinian, climate protest in Milan
- Boat captain rescued clinging to cooler in Gulf of Mexico after storm Milton
- Tears, warnings after Japan atomic survivors group win Nobel
- 'Unspeakable horror': the attacks on Hiroshima and Nagasaki
- Stock markets diverge before China weekend briefing
- Christian villagers 'trapped' in south Lebanon crossfire
- Sabalenka sets up Gauff showdown in Wuhan semis
- EU questions shopping app Temu over illegal products risk
- Kim Sei-young holds lead with late birdies at LPGA Shanghai
- Toulouse welcome Dupont 'boost' as Olympic star returns to Top 14
- Japanese atomic bomb survivor group Nihon Hidankyo wins Nobel Peace Prize
- Deadly Israeli strike on Beirut likely targeted Hezbollah security chief
- Bangladesh Islamist chief backs crimes against humanity trial for ex-PM
- Everest climber's remains believed found after 100 years
- 20 Pakistan coal miners shot dead in attack
- Clashes on South China Sea, Ukraine dominate Asia summit
- Han Kang's books sell out in South Korea after Nobel win
- Zelensky meets Pope, Scholz as whirlwind Europe tour ends
- Hello Hallyu: why is South Korean culture sweeping the globe?
- UK economy rebounds in August in boost to new govt
- Voice of Japan's beloved robot cat 'Doraemon' dies
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- 20 Pakistan coal miners shot dead in attack: police
- Blinken condemns China's 'increasingly dangerous' sea moves
- Toyota returns to Formula One as Haas partner
- EU chief says China must 'adapt its behaviour' to solve trade row
- Musk unveils robotaxi, pledges it 'before 2027'
- Lynx rally, stun Liberty in overtime in WNBA Finals opener
- Pogacar hunting 'perfect' season finale with Coppi's Il Lombardia record
- 'Soul of old Baghdad': city centre sees timid revival
- Kittle at the double as Niners hold off Seahawks
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Yankees advance in MLB playoffs as Guardians stay alive
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- Kamada says Japan can close in on World Cup place against Australia
- On US coast, wind power foes embrace 'Save the Whales' argument
- Renewables revolt in Sardinia, Italy's coal-fired island
- Argentina held, Brazil leave it late in 2026 World Cup qualifiers
- Obama blasts 'crazy' Trump in first rally for Harris
- 2024 Nobel Peace Prize, a plea in favour of world order?
Markets tumble on China lockdowns, rate hike fears
Stock markets and oil prices slumped Monday on growing concern that lockdowns in China aimed at fighting a worsening Covid outbreak could further harm a world economy battling decades-high inflation.
The losses extended last week's sell-off triggered by Federal Reserve boss Jerome Powell indicating that the US central bank would hike interest rates by half a percentage point next month and possibly several times more this year.
That has lent strong support to the dollar, which is benefitting also from its traditional haven status.
Dollar-denominated oil prices tumbled more than five percent Monday.
Among the world's major stock markets, Shanghai led the losses, closing down more than five percent.
Wall Street started lower, though losses were less sharp than in Europe and Asia, with the tech-rich Nasdaq Composite Index down 0.8 percent shortly after the open.
Twitter shares climbed following reports the company will soon accept Elon Musk's takeover offer.
In Europe, Paris shed 1.9 percent in late deals.
French President Emmanuel Macron is set to begin efforts to unite a deeply divided nation after winning re-election Sunday in a battle against rival Marine Le Pen that saw the far right come its closest to taking power.
The euro and yuan slid against the dollar, while sterling lost one percent to hit a 19-month low at $1.2705.
"The markets have fallen out of bed... in a big way," noted AJ Bell investment director Russ Mould.
"The prospect of further restrictions in China could lead to a poisonous mix of further inflationary pressure, as supply chains in the so-called 'factory of the world' get disrupted, and weaker economic growth."
Officials in finance hub Shanghai reported 51 deaths Monday, its highest daily toll despite weeks of strict containment measures, while Beijing warned of a "grim" situation as infections rise.
Investors were already fleeing risk assets as they become worried that the Fed tightening will knock the pandemic economic recovery off course and dent companies' bottom line.
"The surge in energy, as well as food prices, has started to see consumers prioritise where they spend their money," noted Michael Hewson, chief market analyst at CMC Markets UK.
Oil prices sank Monday on fears that China's worsening Covid outbreak could slam demand from the major energy consumer.
"As China is the second largest economy in the world, the situation... has a big impact on commodity markets," said XTB analyst Walid Koudmani.
Metals prices also slumped on Monday, as did share prices of energy and mining companies.
Elsewhere in Asia, Sri Lanka's stock market halted trading after a nearly 13 percent plunge as the island nation's beleaguered government is under pressure to resign over a crippling economic crisis.
- Key figures at 1400 GMT -
New York - Dow: DOWN 1.2 percent at 33,412.66 points
London - FTSE 100: DOWN 1.7 percent at 7,390.63
Paris - CAC 40: DOWN 1.9 percent at 6,459.47
Frankfurt - DAX: DOWN 1.4 percent at 13,940.89
EURO STOXX 50: DOWN 1.9 percent at 3,767.33
Tokyo - Nikkei 225: DOWN 1.9 percent at 26,590.78 (close)
Hong Kong - Hang Seng Index: DOWN 3.7 percent at 19,869.34 (close)
Shanghai - Composite: DOWN 5.1 percent at 2,928.51 (close)
Brent North Sea crude: DOWN 5.4 percent at $100.86 per barrel
West Texas Intermediate: DOWN 5.6 percent at $96.40 per barrel
Euro/dollar: DOWN at $1.0716 from $1.0801 late on Friday
Pound/dollar: DOWN at $1.2719 from $1.2834
Euro/pound: UP at 84.25 pence from 84.14 pence
Dollar/yen: DOWN at 127.73 yen from 128.51 yen
burs-bcp/rl
J.Oliveira--AMWN