-
McIlroy hoping for 'home' comforts at Scottish, British Opens
-
Britain's Fery to face Zverev in Wimbledon semi-finals
-
Noskova aims to emulate Kvitova after reaching first Wimbledon semi
-
Zverev sees off Fritz to make first Wimbledon semi-final
-
Britain's Fery becomes first wildcard to reach Wimbledon semis in 25 years
-
Barcelona sets new heat record at 40.7C: weather agencies
-
Korda chases third major as Kim revisits Evian-winning chip
-
'The Pitt,' 'Hacks' lead Emmy nominations
-
Kooij wins Tour de France 5th stage in chaotic sprint finish
-
France lose appeal against Olise booking at World Cup
-
Trump says Ukraine can make Patriot missiles
-
Putellas joins star cast at London City Lionesses
-
Teenager arrested after two girls wounded in Germany school attack
-
Oil back at $80, stocks slide as Trump says Iran ceasefire over
-
Farage vs Count Binface: hard-right leader's UK poll gambit
-
Vast crowds mourn Khamenei in Iraq's holy cities
-
Hong Kong's Robert Wun: the bold Millennial conquering Haute Couture
-
Uber Eats, Deliveroo say will give France drivers break when too hot
-
IMF cuts 2026 world growth forecast, flags risks from new Mideast fighting
-
Trump tempers fury to end NATO summit on high note
-
Kostyuk sets up Wimbledon semi-final against Noskova
-
Oil shoots back up, stocks slide as Trump says Iran ceasefire over
-
Noskova reaches first Wimbledon semi-final
-
Kostyuk powers into second straight Slam semi-final at Wimbledon
-
Air Canada taps new CEO to replace chief who couldn't speak French
-
Israeli jails a 'graveyard,' says freed Palestinian journalist
-
Istanbul mayor ejected from court in corruption case
-
Family of last woman executed in UK wins posthumous pardon
-
Landslide kills eight at refugee school in Bangladesh
-
'Serial killer' German doctor given life sentence for 15 murders
-
Cleary leads NSW past Queensland to regain State of Origin crown
-
What is going on with Farage's UK election gambit?
-
MEXC Adds Nine Ondo Tokenized Stock and ETF Trading Pairs Tied to AI Infrastructure Demand
-
Dalic quits after 'incredible era' as Croatia coach
-
Oil prices surge, stocks slide as Trump says Iran ceasefire over
-
Bayeux tapestry to arrive in London in secret, high-stakes operation
-
Sunken wrecks, hot seas threaten fishermen on Italian isle
-
Messi World Cup magic masks familiar penalty frailty
-
Rescuers search for survivors of China storms as super typhoon nears
-
Trump lashes out at allies as key NATO summit begins
-
Egypt file complaint against referee after controversial World Cup exit
-
Swiss party into the night after reaching World Cup quarter-finals
-
Apple loses challenge against EU digital competition rules
-
Trump says Iran ceasefire 'over' after fighting flares
-
Trump says Iran ceasefire 'is over'
-
Thai beer dynasty mother drops 'ungrateful child' case against son
-
Rescuers search for missing in China storms after 100,000 flee
-
France v Morocco rematch as World Cup quarter-finals get under way
-
OpenAI to launch new model after US freeze
-
Modi visits Australia for minerals talks and rockstar welcome
Stock markets drop as rate fears take hold; dollar climbs
Stock markets slumped across the board Tuesday after US jobs data signalled the labour market remained buoyant, reinforcing a conviction that interest rates will remain higher for longer as the Federal Reserve tries to bring inflation under control.
The figures also prompted bond market selling that pushed up US Treasury yields and hence the dollar, which jumped past 150 yen.
That raised speculation of Bank of Japan intervention to strengthen its currency -- if it hasn't already done so -- as it did when the yen weakened in October last year. Traders noted that the dollar quickly fell back after breaching the psychological threshold.
For days the focus has been on US Treasury bond yields that have surged to levels not seen in over a decade, suggesting doubts about prospects for growth and corporate earnings.
The yield on the benchmark 10-year Treasury bond has reached the highest level since 2007 -- the beginning of two years of global financial crisis.
A closely watched labour report, known as JOLTS, showed a surprise increase in the number of vacant job openings, to 9.6 million openings, a sign of continued tightness in the jobs market.
The data could induce the Fed to increase interest rates further -- after the 11 hikes since March 2022 -- in its fight against inflation.
"The US labour market remains in rude health, keeping upward pressure on both the US dollar and on yields," said Michael Hewson, chief market analyst at CMC Markets UK.
"If we continue to see yields move higher, with speculation that the US 10-year yield could push up to and beyond 5 percent, the pressure on US stock market valuations could become more intense," he said.
The wary outlook was heightened by comments from a senior Federal Reserve official suggesting no easing of monetary policy anytime soon.
"The most important question at this point is not whether an additional rate increase is needed this year or not, but rather how long we will need to hold rates at a sufficiently restrictive level to achieve our goals," Fed Vice Chair for Supervision Michael Barr said Monday.
"I expect it will take some time," he added.
For investors, that raises the prospect of high borrowing rates that could start to dent corporate earnings and push up unemployment -- lowering the chances for the "soft landing" sought by Fed officials.
Since September, stock indices on both sides of the Atlantic have erased much of the gains seen since the beginning of the year -- in Paris, the CAC 40 fell below 7,000 points at one point for the first time since March.
"Sentiment remains cagey with investors showing no desire to hold onto any gains," said Fawad Razaqzada, a market analyst at StoneX.
He noted that oil prices were recovering from a recent bout of profit-taking, as investors awaited an OPEC ministerial meeting on Wednesday to see if prices will resume their run of gains despite the prospect of sluggish growth.
"Rising oil prices could make stagflation even worse for oil-importing countries in the eurozone, Japan and China, among others," he said.
Asian indices also ended mostly lower with Hong Kong leading the decline, falling nearly 2.7 percent as the market reopened after a holiday weekend.
Russia's currency meanwhile continued to weaken on signs the country's economy is facing slower growth and higher inflation as the fighting in Ukraine drags on.
The ruble crossed the psychological threshold of 100 to the dollar on the Moscow financial exchange -- having already done so in August before recovering -- raising the prospect of weaker spending power for Russians forced to pay more for imported goods.
- Key figures around 1615 GMT -
New York - Dow: DOWN 1.1 percent at 33,078.38 points
London - FTSE 100: DOWN 0.5 percent at 7,470.16 points
Frankfurt - DAX: DOWN 1.1 percent at 15,085.21
Paris - CAC 40: DOWN 1.0 percent at 6,997.05
EURO STOXX 50: DOWN 1.0 percent at 4,095.59
Tokyo - Nikkei 225: DOWN 1.6 percent at 31,237.94 (close)
Hong Kong - Hang Seng Index: DOWN 2.7 percent at 17,331.22 (close)
Shanghai - Composite: Closed for a holiday
Euro/dollar: DOWN at $1.0459 from $1.0484
Pound/dollar: DOWN at $1.2075 from $1.2094
Euro/pound: UP at 86.64 pence from 86.66 pence
Dollar/yen: DOWN at 149.09 yen from 149.84 yen Monday
Brent North Sea crude: UP 0.7 percent at $91.30 per barrel
West Texas Intermediate: UP 1.3 percent at $89.96 per barrel
burs-bcp/js/cw
F.Wagner--VB