- India and Canada expel top envoys in Sikh separatist killing row
- Mbappe says victim of 'fake news' after 'rape' report in Sweden
- Lebanon says 21 killed in strike on northern village
- Netanyahu vows no mercy after deadly Hezbollah drone strike
- Russia could be able to attack NATO by 2030: German intelligence
- EVs seek to regain sales momentum at Paris Motor Show
- Clarke backs Scotland to bounce back from 'tough' run
- Harris, Trump target crucial Pennsylvania as US vote looms
- NASA probe Europa Clipper lifts off for Jupiter's icy moon
- Lebanese Red Cross says 18 killed in strike in north
- Mendy borrowed money from Man City team-mates for legal fees
- Palestinian officials say Israeli forces kill two in West Bank
- Football leagues, unions file EU complaint against FIFA in calendar dispute
- Nigeria boycott AFCON qualifier in Libya after 'inhumane treatment'
- India to recall top envoy to Canada: foreign ministry
- Hezbollah, Israeli troops in 'violent clashes' after drone strike
- China insists won't renounce 'use of force' to take Taiwan as drills end
- Painkiller sale plan to US gives France major headache
- Italy begins landmark migrant transfers to Albania
- Russia jails French researcher for three years
- 'Unsustainable' housing crisis bedevils Spain's socialist govt
- Stocks shrug off China disappointment but oil slides
- New Zealand 4-0 up in America's Cup but British show signs of life
- Russian prosecutor demands 3 years prison for French researcher
- 'Innocent' British nerve agent victim caught in global murder plot: inquiry
- Afghan Taliban vow to implement media ban on images of living things
- Russian prosecutor demands 3 years, 3 months jail for French researcher
- England ready for Pakistan's spin assault in second Test
- New Zealand's Ravindra excited for India Tests with father in crowd
- India's capital bans fireworks to curb air pollution
- Stocks diverge, oil retreats as China disappoints markets
- FIFA to open 'global dialogue' on transfer system after Diarra ruling
- Trio wins economics Nobel for work on wealth inequality
- Starmer vows to cut red tape as he urges foreign investors to 'back' UK
- Ex-Stasi officer jailed over 1974 Berlin border killing
- 'Not viable': Barcelona turns against surging tourism
- Hezbollah says targeted Israeli naval base after deadly drone strike
- Rice praises 'unbelievable' England interim boss Carsley despite uncertainty
- Nepali teenager hailed as hero after climbing world's 8,000m peaks
- England captain Stokes back from injury for second Pakistan Test
- Shanghai stocks gain after stimulus briefing as markets rally
- Shanghai stocks gain after stimulus briefing as Asian markets rally
- South Korea military says 'fully ready' as drone flights anger North
- Pakistan 'vigilantes' behind rise in online blasphemy cases
- Nearly 90, but opera legend Kabaivanska is still calling tune
- Smith experiment as Test opener over, Green out of India series
- With inflation down, ECB eyes faster tempo of rate cuts
- Is life possible on a Jupiter moon? NASA goes to investigate
- Dodgers crush Mets 9-0 in MLB playoff series opener
- South Korea military says 'fully ready' as drone tensions soar
Recession fears send oil prices plunging, equities diverge
Wall Street stocks climbed Wednesday as the US Fed chief stressed the need to combat decades-high inflation, but elsewhere equities and oil prices tumbled on mounting recession fears as central banks hike interest rates.
Wall Street was moderately higher in late morning trading, while European and Asian markets closed in the red, a day after healthy gains.
Federal Reserve boss Jerome Powell began two days of testimony to US lawmakers on Wednesday, warning that the US economy faced an "uncertain" global environment and could face further inflation "surprises".
His testimony to Congress this week will be pored over for an idea about officials' plans for fighting runaway prices, which are being fanned by supply chain snarls, China's Covid lockdowns and the war in Ukraine.
Powell once again stressed that the Fed was committed to bringing down inflation -- which has reached a 40-year high -- with higher interest rates.
But the world's largest economy "is very strong and well positioned to handle tighter monetary policy", he said.
Most observers expect the Fed to aggressively hike US interest rates several more times this year, having recently carried out the sharpest lift in almost 30 years.
Powell said rapid interest rate increases were meant to cool demand and bring inflation down, but he acknowledged the risk that the hikes could trigger a US recession.
"It's not our intended outcome at all, but it's certainly a possibility," Powell said in testimony to the Senate Banking Committee.
"The 'R' word is likely to come up a lot today and the Chairman will have a tough time dodging it, especially with mid-terms in five months," said OANDA market analyst Craig Erlam, referring to recession.
"Naturally, he'll do his best to remain apolitical but I'm not sure investors will be able to ignore so much recession chat," he added.
Expectations of more rate hikes have been handing support to the dollar, which pushed the yen briefly to a fresh 24-year low Wednesday, before sliding against major rivals.
The Bank of Japan is holding back from lifting interest rates, in sharp contrast to other major central banks.
Oil prices were feeling the heat from recessionary fears, with both main contracts tanking more than six percent at one point.
"Concerns about a global slowdown appear to be outweighing any concern over supply issues derived from Russia’s invasion of Ukraine, and the prospect that Chinese demand could return," said market analyst Michael Hewson at CMC Markets.
Crude and gas prices have soared in recent months after major economies lifted pandemic lockdowns and following the invasion of Ukraine by major energy producer Russia.
Surging energy costs are fuelling global inflation, with official data Wednesday showing the British annual rate hitting a fresh 40-year high above nine percent.
In the United States, President Joe Biden asked Congress on Wednesday to suspend the federal gas tax for three months as skyrocketing prices cause widespread anger among Americans just months before crucial mid-term elections.
A senior administration official noted that US gas prices -- averaging near $5 per gallon -- had jumped almost $2 since Russian President Vladimir Putin began building up forces on the Ukrainian border earlier this year.
- Key figures at around 1530 GMT -
Brent North Sea crude: DOWN 3.7 percent at $110.39 per barrel
West Texas Intermediate: DOWN 110.39 percent at $104.86 per barrel
New York - Dow: UP 0.3 percent at 30,623.29 points
EURO STOXX 50: DOWN 0.8 percent at 3,467.26
London - FTSE 100: DOWN 0.9 percent at 7,089.22 (close)
Frankfurt - DAX: DOWN 1.1 percent at 13,144.28 (close)
Paris - CAC 40: DOWN 0.8 percent at 5,916.63 (close)
Tokyo - Nikkei 225: DOWN 0.4 at 26,149.55 (close)
Hong Kong - Hang Seng Index: DOWN 2.6 percent at 21,008.34 (close)
Shanghai - Composite: DOWN 1.2 percent at 3,267.20 (close)
Euro/dollar: UP at $1.0594 from $1.0535 late Tuesday
Pound/dollar: UP at $1.2304 from $1.2273
Euro/pound: UP at 86.10 pence from 85.80 pence
Dollar/yen: DOWN at 135.89 yen from 136.64 yen
burs-rl/jj
M.Thompson--AMWN