- Saudi crown prince says no Israel ties without Palestinian state
- Canada to further cut international student, foreign worker permits
- YouTube launches new TV-focused tools for creators
- White Sox heading for worst season in MLB history
- China the top challenge in US history: senior diplomat
- Hong Kong democracy tycoon's son warns time running out
- New migraine drugs no better than cheap painkillers: big study
- Sean 'Diddy' Combs again denied bail in sex trafficking case
- Brewers clinch division title as MLB playoff race heats up
- Man City blunted by 'giant' Inter in Champions League stalemate
- US stocks dip despite larger Fed interest rate cut
- Man City held by Inter as PSG pinch win in Champions League
- All Blacks recall Beauden Barrett for Australia Test
- Fears of all-out war as new Lebanon device blasts kill 20, wound 450
- Spurs late show saves Postecoglou blushes at Coventry
- PSG snatch late goal to beat Champions League debutants Girona
- Gittens' late double gives Dortmund Champions League win at Brugge
- Man City blunted by Inter in Champions League stalemate
- Hidden talent: French Olympic star Marchand opts for disguise
- MrBeast named in California lawsuit over 'Beast Games' show
- Gauff splits with Gilbert as coach after 14-month run
- Hundreds of thousands at risk in Sudan's El-Fasher: UN
- Harvey Weinstein pleads not guilty to new sex crime charge
- Venezuelan opposition candidate says letter conceding election was coerced
- Ukraine official claims Russian advance in Kursk has been 'stopped'
- X update allows app to bypass Brazil ban: internet providers
- Fears of all-out war as new Lebanon device blasts kill 14, wound 450
- US Fed makes aggressive rate cut, weeks before election
- Arsenal's Odegaard faces lengthy injury absence
- India coal expansion risks massive methane growth: report
- China the top challenge in US history, top diplomat says
- US Fed makes larger half-point cut in first reduction since 2020
- Ronaldo's Al Nassr appoint former AC Milan boss Pioli
- Ainslie 'relieved' as British book place in Louis Vuitton Cup final
- Struggling Roma replace sacked icon De Rossi with Ivan Juric
- Women's NBA will add 15th team in Portland in 2026
- Brazil fires need harsher punishment: environmental police boss
- Boeing to start large temporary furloughs amid Seattle strike
- Fears of all-out war as new Lebanon device blasts kill nine, wound 300
- 'Emergency' declared over falling UK butterfly numbers
- McIlroy outlines threats to golf peace deal
- Stock markets, dollar slip before US rate decision
- Russian advance in Kursk 'stopped': Ukraine official to AFP
- UN members demand end to 'unlawful' Israeli occupation of Palestinian territories
- Snapchat pushes 'safer' platform image, but not everyone agrees
- Three dead, 100 wounded in new wave of Lebanon device explosions
- So where does the oceans' plastic waste come from?
- Allied war heroes buried in Netherlands... 80 years on
- Marsh coy over Australia's choice to open alongside Head
- New London sculpture pays tribute to trans community
CMSC | 0.02% | 25.055 | $ | |
SCS | 0.71% | 14.11 | $ | |
RIO | -0.02% | 62.91 | $ | |
CMSD | -0.12% | 24.98 | $ | |
NGG | -0.46% | 70.05 | $ | |
RBGPF | 5.79% | 60.5 | $ | |
GSK | -0.31% | 42.43 | $ | |
BCE | 3.09% | 35.61 | $ | |
AZN | 0.06% | 78.58 | $ | |
JRI | 0.45% | 13.44 | $ | |
BTI | -0.34% | 37.88 | $ | |
BCC | 1.33% | 137.06 | $ | |
BP | -0.37% | 32.43 | $ | |
RYCEF | 1.37% | 6.55 | $ | |
VOD | 0.49% | 10.23 | $ | |
RELX | -0.82% | 47.37 | $ |
World stocks shrug off rate, inflation concerns
Global stock markets mostly held their ground on Tuesday as investors shrugged off concerns of higher interest rates in the face of high inflation.
In mid-afternoon trading, the main European markets were all in positive territory, taking their lead from gains in Asia earlier, even if, on the other side of the Atlantic, sentiment softened slightly on Wall Street.
The day before, US equities had jumped as Federal Reserve officials sought to play down concerns that the US central bank will embark on an aggressive phase of monetary tightening.
But when trading opened on Tuesday, the Dow eased back into negative territory, while if the tech-heavy NASDAQ was up 1.6 percent.
Stocks have been under pressure as the Federal Reserve has shifted policy and signalled a likely interest rate hike in March. Investors have also been monitoring ongoing tensions in Ukraine and the ebbs and flows of Covid-19.
"Good news is that some Federal Reserve officials are finally out trying to soothe investors' nerves, saying that they still want to avoid unnecessarily disrupting the US economy," said Swissquote analyst, Ipek Ozkardeskaya.
"The S&P 500 (on Wall Street) finished January with a strong two-day rally, but the index is still more than five percent lower than where it kicked off the year, having recorded its worst month since March 2020."
Oil prices dipped again as the world's top crude-producing countries prepare to meet Wednesday to discuss a further increase in output.
- Rate decisions -
On Tuesday, Sydney shares ended in positive territory as the Australian central bank decided against raising interest rates to battle inflation, instead just announcing the end to its bond-buying stimulus from next week.
Traders are now awaiting policy decisions by the Bank of England and European Central Bank due Thursday, the eve of key US jobs data.
The surge on Wall Street on Monday came at the end of a volatile month characterised by speculation over the Fed's plans to get a grip on runaway prices, with fears that it could raise US borrowing costs as many as seven times this year, starting with a 50-basis-point move in March.
Comments from some leading Fed officials at the weekend added to expectations the policy board would go hard and fast, though some were out on Monday trying to play down such a move.
The Nasdaq closed up more than three percent Monday, paring losses for January to nine percent, having at one point been down almost 15 percent during the month.
Business was thin across Asia Tuesday owing to the Chinese New Year break that saw Hong Kong, Shanghai, Singapore, Seoul, Taipei, Manila and Jakarta closed.
"Investors should not lose sight of the fact that the economy remains strong, which should limit downside from current levels," said And Solita Marcelli at UBS Global Wealth Management.
- Key figures around 1450 GMT -
New York - Dow: DOWN 0.1 percent at 35,063.78 points
London - FTSE 100: UP 0.9 percent at 7,529.34
Frankfurt - DAX: UP 1.2 percent at 15,663.63
Paris - CAC 40: UP 1.5 percent at 7,102.57
EURO STOXX 50: UP 1.3 percent at 4,229.84
Tokyo - Nikkei 225: UP 0.3 percent at 27,078.48 (close)
Hong Kong - Hang Seng Index: Closed for a holiday
Shanghai - Composite: Closed for a holiday
Euro/dollar: UP at $1.1271 from $1.1235 late Monday
Pound/dollar: UP at $1.3511 from $1.3445
Euro/pound: DOWN at 83.43 pence from 83.54 pence
Dollar/yen: DOWN at 114.68 yen from 115.13 yen
Brent North Sea crude: DOWN 1.0 percent at $88.36 per barrel
West Texas Intermediate: DOWN 1.0 percent at $87.29 per barrel
E.Schubert--BTB