- Alcaraz, Sinner breeze into third round of Shanghai Masters
- Bagnaia wins Japan MotoGP sprint to cut Martin's lead
- Alcaraz breezes into third round of Shanghai Masters
- Gaza cultural heritage brought to light in Geneva
- 'Bullet for democracy': Trump returns to site of rally shooting
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- South Korean cult-horror series 'Hellbound' returns at BIFF
- Nepalis fear more floods as climate change melts glaciers
- Honduras arrests environmentalist's alleged murderer
- Padres pitcher Musgrove needs elbow surgery
- Supreme Court lets stand rules to curb mercury, methane emissions
- Boston beat Denver in NBA exhibition season opener, but Jokic says omens are good
- Chagos diaspora angry at lack of input on islands' fate
- Biden says 'not confident' of peaceful US election
- US trade chief defends tariff hikes when paired with investment
- Lukaku stars as Napoli beat Como to hold Serie A top spot
- Ohtani set for MLB playoff debut as Dodgers face Padres
- Pogba's drug ban cut to 18 months from four years
- Devine leads New Zealand to big win over India in Women's T20 World Cup
- Bosnia floods kill 16 people
- EU court blocks French ban on vegetable 'steak' labelling
- Prosecutors seek dismissal of rape charges against French rugby players
- Meta AI turns pictures into videos with sound
- Bolivia's Morales says claims he raped a minor are a 'lie'
- MLB Reds hire two-time champion Francona as manager
- Daniel Maldini receives first Italy call-up for Nations League
- US dockworkers return to ports after three-day strike
- Ancelotti points finger at Madrid's 'lack of intensity'
- Haiti reeling after 70 killed in gang attack
- Five Czech kids in hospital over TikTok 'piercing challenge'
- What happens next in Iran-Israel conflict?
- Country star Garth Brooks denies rape accusations
- Stubbs hits maiden century as South Africa make 343-4 against Ireland
- DR Congo to begin mpox vaccination campaign Saturday in east
- Odegaard injury has forced Arsenal to be 'different', says Arteta
- Ratcliffe refuses to guarantee Ten Hag's Man Utd future
- Meta must limit data use for targeted ads: EU court
- Mauritius to hold legislative election on November 10
- Britain qualify for America's Cup final after 60-year wait
- IMF asks Sri Lanka to protect hard-won gains
- Morata returns to Spain Nations League squad after injury
- Irish regulator to probe Ryanair use of facial recognition
- Public allowed to see video evidence in France mass rape trial
- US hiring soars past expectations in sign of resilient market
- Under-fire Ten Hag 'together' with Man Utd hierarchy
- Guardiola talks of Man City love affair as financial hearing rumbles on
- De Bruyne out of Belgium Nations League squad
- Japanese trainer Yahagi hopes Shin Emperor achieves 50-year-old Arc dream
- UK's Starmer hails 'landmark' carbon capture funding
- As EU targets Chinese cars, European rivals sputter
Markets plunge on China lockdowns, rate hike fears
Stock markets and oil prices sank Monday on growing concern that lockdowns in China aimed at fighting a worsening Covid outbreak could further harm a world economy battling decades-high inflation.
The losses extended last week's sell-off triggered by Federal Reserve boss Jerome Powell indicating that the US central bank would hike interest rates by half a percentage point next month and possibly several times more this year.
Among the world's major stock markets, Shanghai led the losses, closing down more than five percent.
In Europe, Paris shed 2.3 percent approaching the half-way stage.
French President Emmanuel Macron is set to begin efforts to unite a deeply divided nation after winning re-election Sunday in a battle against rival Marine Le Pen that saw the far right come its closest to taking power.
In foreign exchange Monday, the euro slid against the dollar, while oil prices at one point tumbled more than five percent.
The dollar was up sharply also against the pound, but down versus the yen, seen as a haven investment in times of economic turbulence.
"The markets have fallen out of bed... in a big way," noted AJ Bell investment director Russ Mould.
"The prospect of further restrictions in China could lead to a poisonous mix of further inflationary pressure, as supply chains in the so-called 'factory of the world' get disrupted, and weaker economic growth."
Officials in finance hub Shanghai reported 51 deaths Monday, its highest daily toll despite weeks of strict containment measures, while Beijing warned of a "grim" situation as infections rise.
Investors were already fleeing risk assets as they become worried that the Fed tightening will knock the pandemic economic recovery off course and dent companies' bottom line.
"The surge in energy, as well as food prices, has started to see consumers prioritise where they spend their money," noted Michael Hewson, chief market analyst at CMC Markets UK.
Oil prices sank Monday on fears that China's worsening Covid outbreak could slam demand from the major energy consumer.
"As China is the second largest economy in the world, the situation... has a big impact on commodity markets," said XTB analyst Walid Koudmani.
Metals prices also slumped on Monday, as did share prices of energy and mining companies.
Elsewhere in Asia, Sri Lanka's stock market halted trading after a nearly 13 percent plunge as the island nation's beleaguered government is under pressure to resign over a crippling economic crisis.
- Key figures at 1000 GMT -
London - FTSE 100: DOWN 2.2 percent at 7,354.14 points
Paris - CAC 40: DOWN 2.3 percent at 6,430.86
Frankfurt - DAX: DOWN 1.6 percent at 13,910.25
EURO STOXX 50: DOWN 2.3 percent at 3,753.50
Tokyo - Nikkei 225: DOWN 1.9 percent at 26,590.78 (close)
Hong Kong - Hang Seng Index: DOWN 3.7 percent at 19,869.34 (close)
Shanghai - Composite: DOWN 5.1 percent at 2,928.51 (close)
New York - Dow: DOWN 2.8 percent at 33,811.40 (close)
Brent North Sea crude: DOWN 4.3 percent at $102.02 per barrel
West Texas Intermediate: DOWN 4.4 percent at $97.57 per barrel
Euro/dollar: DOWN at $1.0738 from $1.0801 late on Friday
Pound/dollar: DOWN at $1.2733 from $1.2834
Euro/pound: UP at 84.32 pence from 84.14 pence
Dollar/yen: DOWN at 128.18 yen from 128.51 yen
E.Raimundo--PC