![Stocks fall as rate cut outlook dims; oil up on attack](https://www.berlinertageblatt.de/media/shared/articles/15/38/f4/Stocks-fall-as-rate-cut-outlook-dim-990173.jpg)
-
'Super proud' Sabalenka downs Pegula to win US Open thriller
-
In Papua New Guinea, Pope holds mass 'at the edge of the world'
-
Hewett stays positive for wheelchair tennis despite agonising defeat
-
Three things on US Open champion Aryna Sabalenka
-
Sabalenka downs Pegula to win US Open thriller
-
USA men land Paralympic basketball three-peat, Jiang takes 7th swim gold
-
USA slump to first home defeat against Canada in 67 years
-
Argentina hand Australia record 67-27 loss in Rugby Championship
-
England impress on Carsley bow, Germany, Dutch hit five
-
AFP photographer wins top prize for Gaza coverage
-
No Love for Packers for three weeks after ligament sprain: reports
-
Pedro Almodovar: chronicler of modern Spain crowned in Venice
-
Almodovar wins top Venice prize for end-of-life film
-
Trump sounds dark tone at rally, Harris 'ready' for debate
-
Wirtz and Musiala dazzle to kick-start new Germany era
-
Chinese teenager takes 7th gold of Paris Paralympics
-
England interim boss Carsley 'respects' divided opinions over anthem
-
Neuville moves to the front in the Acropolis Rally
-
Garfield, Pugh charm Toronto in new romance 'We Live in Time'
-
21 boys confirmed dead in Kenya school inferno
-
Over 100,000 protest in France against new prime minister
-
Golden 30 minutes takes China to swimming Paralympics swimming domination
-
Green leads Australia to T20 series sweep of Scotland
-
Nigeria, Cameroon win afer chaotic AFCON build-ups
-
Nicole Kidman: A-lister, cinematic chameleon, wins in Venice
-
'I had to prove myself', says Kolisi after win against All Blacks
-
Almodovar wins top prize at Venice film festival
-
Grealish savours England redemption after 'worst summer'
-
Carsley makes flying start as England interim boss in win over Ireland
-
Springboks close on Rugby Championship with storming win over All Blacks
-
Sri Lanka's De Silva and Kamindu Mendis defy England in third Test
-
Farrell's Racing lose on opening day of Top 14
-
Ireland and UK to 'reset' relations as Starmer visits Dublin
-
Dunbar takes second Vuelta stage as Roglic closes in on victory
-
Fritz eyes US Open glory to end 21 years of American hurt
-
Thousands protest in France against new prime minister
-
Death toll from Kenya school blaze rises to 21
-
Brazil's right rallies for 'freedom' after X suspended
-
Trump to hold rally in swing state, Harris preps for debate
-
Stone at the double as Sri Lanka collapse against England in third Test
-
French tennis player takes legal action over online abuse
-
Italy backs Kyiv's 'legitimate defence' as Zelensky presses allies
-
The Body Shop rescued from administration after deal
-
Martin roars to victory in San Marino sprint, extends MotoGP lead
-
Smoke and screams: The horror of Kenya's school dorm inferno
-
MotoGP leader Martin roars to victory in San Marino sprint
-
Ireland and UK to 'reset' relations as Starmer begins Dublin visit
-
Ma Lin turns brutal encounter with bear into glorious Paralympic career
-
Flintoff appointed England Lions head coach
-
Sri Lanka hit back as Pope falls during England collapse in second Test
![Stocks fall as rate cut outlook dims; oil up on attack](https://www.berlinertageblatt.de/media/shared/articles/15/38/f4/Stocks-fall-as-rate-cut-outlook-dim-990173.jpg)
Stocks fall as rate cut outlook dims; oil up on attack
Stock markets fell Wednesday as indicators and comments from central bankers further dented hopes for interest rate cuts, while oil kept rising after an attack on a ship in the Red Sea stoked supply worries.
Many investors sought to lock in recent gains ahead of a series of crucial inflation data reports at the end of the week in the eurozone and the United States.
A forecast-beating report Tuesday on US consumer confidence further added to evidence the economy is not slowing fast enough to allow the Federal Reserve to cut borrowing costs any time soon.
A higher-than-expected inflation report in Australia Wednesday soured the mood in Asian trading.
In addition, US Treasury yields -- a proxy for interest rates -- moved higher.
"The bump in rates has been cited as a headwind, but one can't forget that this market -- and certain stocks -- have made a big move in a short amount of time," said Patrick O'Hare, an analyst at Briefing.com.
All three major US indexes opened lower in New York.
Providing more gloom, US central bank official Neel Kashkari warned that decision-makers had not ruled out a possible hike if they continue to struggle to bring prices down to their two percent target.
"Kashkari's latest comment about a lingering restrictive stance, stating that additional rate hikes haven't been completely ruled out, has significantly dented investors' risk appetite," said ActivTrades analyst Ricardo Evangelista.
His comments come after several other Fed officials have recently said they were cautious about cutting too soon and wanted to see more data proving inflation was coming back down to two percent.
The next major US indicator is Friday's Personal Consumption Index, the Federal Reserve's favourite inflation index.
On the same day, eurozone inflation data for May will be published and a further cooling would reaffirm expectations of a June rate reduction from the European Central Bank.
Data on Wednesday showed inflation in Germany, Europe's biggest economy, accelerated to 2.4 percent in May, though analyst said it was due to one-off factors and it would not affect the ECB's rate-cut move.
All the main stock markets in Europe were lower, following on from weak markets in Asia.
Among individual stocks, Anglo American shares were down 1.9 percent in London after the mining giant rejected a request from BHP to extend a Wednesday deadline for takeover talks, putting the Australian group's bid on the brink of collapse.
In commodity trading, oil prices rose after a bulk carrier was attacked in the Red Sea, a key waterway for tankers shipping crude.
The strike heightened concerns about tensions in the region as Israeli forces continue a ground invasion of Rafah in southern Gaza.
Also on traders' minds is the upcoming meeting of OPEC and other key oil producers that is expected to see them roll over output cuts.
Expectations that interest rates could drop earlier in Europe than in the US helped firm up the dollar against most of its peers.
- Key figures around 1340 GMT -
New York - Dow: DOWN 1.0 percent at 38,463.48
New York - S&P 500: DOWN 0.8 percent at 5,265.48
New York - Nasdaq Composite: DOWN 0.7 percent at 16,897.75
London - FTSE 100: DOWN 0.7 percent at 8,194.69 points
Paris - CAC 40: DOWN 1.6 percent at 7,931.75
Frankfurt - DAX: DOWN 1.2 percent at 18,449.10
EURO STOXX 50: DOWN 1.4 percent at 4,960.95
Tokyo - Nikkei 225: DOWN 0.8 percent at 38,556.87 (close)
Hong Kong - Hang Seng Index: DOWN 1.8 percent at 18,477.01 (close)
Shanghai - Composite: UP 0.1 percent at 3,111.02 (close)
Dollar/yen: UP at 157.28 from 157.14 yen on Tuesday
Euro/dollar: DOWN at $1.0835 from $1.0862
Pound/dollar: DOWN at $1.2739 from $1.2763
Euro/pound: DOWN at 85.06 from 85.09 pence
West Texas Intermediate: UP 0.4 percent at $80.15 per barrel
Brent North Sea Crude: UP 0.3 percent at $84.49 per barrel
I.Meyer--BTB