- Marmoush double denies Bayern outright Bundesliga top spot
- Rallies worldwide call for Gaza, Lebanon ceasefire
- New 'Joker' film, a dark musical, tops N.America box office
- Man Utd stalemate keeps Ten Hag in danger, Spurs rocked by Brighton
- Drowned by hurricane, remote N.Carolina towns now struggle for water
- Vikings hold off Jets in London to stay unbeaten
- Ahead of attack anniversary, Netanyahu says: 'We will win'
- West Indies cruise to T20 World Cup win over Scotland
- Man Utd fire another blank in Aston Villa stalemate
- Lewandowski treble powers Liga leaders Barca to Alaves victory
- Russian activist killed on front line in Ukraine
- Openda strike briefly sends Leipzig top of Bundesliga
- Goal-shy Man Utd have to 'step up', says Ten Hag
- India bowl out Bangladesh for 127 in T20 opener
- Madueke rescues Chelsea in draw with 10-man Forest
- Beckett's belief rewarded as Bluestocking storms to Arc glory
- Trump on the stump, Harris hits airwaves in razor-edge US election
- Flash flooding kills three in northern Thailand
- Kaur leads India to victory over Pakistan in Women's T20 World Cup
- Juventus held by Cagliari after late penalty drama
- In France's Marseille, teen 'stabbed 50 times' then burned alive
- Ruthless Gauff beats Muchova in straight sets to win China Open
- India restrict Pakistan to 105-8 in Women's T20 World Cup
- England target repeat of Pakistan Test whitewash
- Penrith Panthers win fourth straight NRL title after downing Storm
- Weary Sinner happy for day off after battling into Shanghai last 16
- Pakistan's Masood warns England still a force without Stokes
- Madrid's Carvajal to miss several months after serious knee injury
- Two elephants die in flash flooding in northern Thailand
- Sabalenka targets world number one and Wuhan hat-trick
- Tunisia votes with Saied set for re-election
- Bagnaia sets 'example' with Japan MotoGP win to cut gap on Martin
- Intense Israeli bombing rocks Beirut ahead of war anniversary
- Mozambique vote: no suspense but some disillusion
- Austrian rapper channels anti-racist rage in Romani hip-hop songs
- Ohtani magic powers Dodgers over Padres in MLB playoff thriller
- Five of the best: Pakistan-England Test thrillers
- Man sets arm on fire as marches across US mark Gaza war anniversary
- Vietnam's young coffee entrepreneurs brew up a revolution
- Trump rallies at site of failed assassination: 'Never quit'
- Too hot by day, Dubai's floodlit beaches are packed at night
- Is music finally reckoning with #MeToo?
- Fans hail Trump's 'guts' as he returns to site of rally shooting
- Lebanon state media says Israeli strikes hit south Beirut
- Miami on track for MLS record points after win in Toronto
- Monaco take top spot in Ligue 1 with win at Rennes
- Madrid beat Villarreal to level Liga leaders Barca
- Thuram treble fires Inter past Torino and up to second
- 'Fight': defiant Trump jets in to site of rally shooting
- Mexico City's new mayor sworn in with pledges on water, housing
Eurozone stocks sink as inflation accelerates to record high
Eurozone equity markets sank Tuesday on news that the region's inflation rate has spiked to another record high in May on fallout from Russia's invasion of Ukraine.
The eurozone's increase in consumer prices hit 8.1 percent, up from 7.4 percent in April, official data showed Tuesday, with energy surging the fastest.
Sentiment took another battering on fears of harsh economic fallout after the European Union reached a deal on a partial embargo of Russian oil imports in punishment for its assault on Ukraine.
The embargo also sent oil prices spiking to two-month peaks, in turn fuelling more inflationary fears and pressuring central banks to tighten monetary policy and prevent consumer prices rocketing even higher.
However, the resurgent oil market lifted the London stock market because it boosts profits and revenues for energy majors BP and Shell.
- Energy 'may soar faster' -
"Inflation in the eurozone increased even further," said Jonas Keck, economist at UK-based research group the Centre for Economics and Business Research.
"As the EU reached an agreement on new sanctions targeting Russian oil supplies, energy prices may well soar even faster in the coming months."
Markets have been rocked this year as the Ukraine conflict has fuelled massive price gains for energy and food, translating into spiking inflation that threatens to derail the post-pandemic economic recovery.
Red-hot eurozone inflation intensified calls for interest rate hikes from the European Central Bank (ECB), which has already flagged plans to hike borrowing costs in July.
"Over recent months, the ECB has faced growing pressure to shift away from its pandemic stimulus position, which has seen it hold its main policy rates at their current historic lows," added Keck.
"This stands in contrast to other major central banks including the US Federal Reserve and Bank of England, both of which have seen at least two rate rises this year."
With Wall Street closed for a holiday on Monday, there were few catalysts to help extend the gains enjoyed in recent days, allowing inflation and borrowing costs to take centre stage.
- Brent oil tops $124 -
In reaction to the EU's partial embargo, Brent oil briefly broke above $124 per barrel and WTI crude breached $119.
European chiefs said the latest sanctions would ban purchases of Russian oil delivered by sea, though there would be a temporary exemption for pipelines.
While widely expected, the agreement adds further upside to crude just as China begins to ease Covid restrictions in Shanghai and Beijing, raising the likelihood of a jump in demand from the world's number two economy.
There was some much-needed cheer from data showing China's manufacturing shrunk in May at a slower rate than expected.
The Purchasing Managers' Index (PMI) -- a key gauge of manufacturing activity -- hit 49.6 last month, improving from April's 47.4, which was the worst reading since early 2020.
However, it remained below the 50-point mark separating growth from contraction and showed the Chinese economy was still struggling.
- Key figures at around 1115 GMT -
Frankfurt - DAX: DOWN 0.8 percent at 14,462.95
Paris - CAC 40: DOWN 1.0 percent at 6,500.16
EURO STOXX 50: DOWN 0.8 percent at 3,810.35
London - FTSE 100: UP 0.2 percent at 7,618.33 points
Brent North Sea crude: UP 1.7 percent at $123.78 per barrel
West Texas Intermediate: UP 3.1 percent at $118.65
Tokyo - Nikkei 225: DOWN 0.3 percent at 27,279.80 (close)
Hong Kong - Hang Seng Index: UP 1.4 percent at 21,415.20 (close)
Shanghai - Composite: UP 1.2 percent at 3,186.43 (close)
New York - Dow: Closed for a holiday
Euro/dollar: DOWN at $1.0698 from $1.0779 on Monday
Pound/dollar: DOWN at $1.2590 from $1.2652
Euro/pound: DOWN at 84.99 pence from 85.20 pence
Dollar/yen: UP at 128.01 yen from 127.59 yen
burs-rfj/kjm
F.Moura--PC