- 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
- Boeing suspends negotiations with striking workers
- 7-Eleven owner's shares spike on report of new buyout offer
- Your 'local everything': what 7-Eleven buyout battle means for Japan
- Three million UK children living below poverty line: study
- China's Jia brings film spanning love, change over decades to Busan
- Paying out disaster relief before climate catastrophe strikes
- Chinese shares drop on stimulus upset, Asia tracks Wall St higher
- SE Asian summit seeks progress on Myanmar civil war
- How climate funds helped Peru's women beekeepers stay afloat
- Nobel Peace Prize to be awarded as wars rage
- Pacific island nations swamped by global drug trade
- AI-aided research, new materials eyed for Nobel Chemistry Prize
- Mozambique elects new president in tense vote
- The US economy is solid: Why are voters gloomy?
- Balkan summit to rally support for struggling Ukraine
- New stadium gives Real Madrid a headache
- Alonso, Manaea shine as 'Miracle Mets' blitz Phillies
- Harris, Trump trade blows in US election media blitz
- Harry's Bar in Paris drinks to US straw-poll centenary
- Osama bin Laden's son Omar banned from returning to France
- Afghan man arrested for plotting US election day attack
- Brazil lifts ban on Musk's X, ending standoff over disinformation
- Harris holds slight edge nationally over Trump: poll
- Chelsea edge Real Madrid in Women's Champions League, Lyon win
- Japan PM to dissolve parliament for 'honeymoon' snap election
- 'Diego Lives': Immersive Maradona exhibit hits Barcelona
Stock markets diverge, as oil prices cool
Europe's main stock markets fell Tuesday after gains in Asia, as attention turned to economic data and its impact on the outlook for interest rates.
The week's main focus is expected to be US inflation figures Wednesday, while attention is also on the oil market on concerns about a broader war in the Middle East.
Crude futures dropped Tuesday but remained well up over the week owing also to an escalation of tensions in major oil producer Russia.
The White House warned that a "significant set of attacks" by Iran and its proxies against Israel was possible as soon as this week after top leaders of Hezbollah and Hamas were assassinated in late July.
While the mood on trading floors has calmed since last week's volatility, investors remained cagey before US consumer and wholesale price figures this week that could play a role in the Federal Reserve's monetary policy decision-making.
Observers warned that the inflation readings could cause big market moves in either direction, with a weaker-than-expected print adding to worries about the world's biggest economy, while a strong reading could dent rate-cut bets.
"One of the major risks is the timing and magnitude of the Fed's rate cuts," said ACY Securities' Luca Santos.
"If the Fed delays easing monetary policy, the US economy could risk entering a deeper slowdown, leading to a potential recession.
"Conversely, if the Fed cuts rates too aggressively, it might reignite inflationary pressures or create financial market instability. Balancing these risks will be crucial for maintaining economic stability," Santos added.
After a tepid Monday on Wall Street, Asian markets extended a strong start to the week.
Tokyo surged, with traders catching up with Monday's gains elsewhere after a long holiday weekend in Japan.
London gave up early gains won after data showed Britain's unemployment rate had unexpectedly dropped in the second quarter and wage growth slowed to the lowest level in nearly two years.
Paris and Frankfurt fell slightly approaching the half-way mark.
German investor confidence worsened more than expected in August, a survey showed Tuesday, as a hoped-for recovery in Europe's largest but struggling economy remains out of reach.
The ZEW institute's closely-watched economic expectations index fell to 19.2 points, a steep drop of 22.6 points from a month earlier.
- Key figures around 1100 GMT -
London - FTSE 100: DOWN 0.1 percent at 8,198.64 points
Paris - CAC 40: DOWN 0.2 percent at 7,234.30
Frankfurt - DAX: DOWN 0.1 percent at 17,700.82
EURO STOXX 50: DOWN 0.1 percent at 4,665.45
Tokyo - Nikkei 225: UP 3.5 percent at 36,232.51 (close)
Hong Kong - Hang Seng Index: UP 0.4 percent at 17,174.06 (close)
Shanghai - Composite: UP 0.3 percent at 2,867.95 (close)
New York - Dow: DOWN 0.4 percent at 39,357.01 (close)
Euro/dollar: DOWN at $1.0923 from $1.0931 on Monday
Pound/dollar: UP at $1.2785 from $1.2766
Dollar/yen: UP at 147.53 yen from 147.26 yen
Euro/pound: DOWN at 85.42 pence from 85.61 pence
West Texas Intermediate: DOWN 0.3 percent at $79.84 per barrel
Brent North Sea Crude: DOWN 0.3 percent at $82.04 per barrel
Y.Nakamura--AMWN