- As Great Salt Lake dries, Utah Republicans pardon Trump climate skepticism
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- Mourners pay tribute to latest victims of deadly Channel crossing
- Phillies win thriller to level Mets series
- Yu bags first PGA Tour win with playoff win
- PSG held by Nice to leave Monaco clear at top of Ligue 1
- Lewandowski treble for leaders Barca as Atletico held
- Fresh Israeli strikes hit south Beirut
- Sucic stunner earns Real Sociedad draw against Atletico
- PSG draw with Nice, fail to reclaim top spot in Ligue 1
- Gudmundsson downs AC Milan after De Gea's penalty heroics for Fiorentina
- 'Yes' vote prevails in Kazakhstan nuclear plant vote: TV
- 'Difficult day': Oct 7 commemorations begin with festival memorial
- Commemorations begin for anniversary of attack on Israel
- 'Nothing gets in way of team,' says Celtics' MVP hopeful Tatum
- 'We will win!': Mozambique's ruling party confident at final vote rally
- Tunisia voting ends as Saied eyes re-election with critics behind bars
- Florida braces for Milton, FEMA head slams 'dangerous' Helene misinformation
- Postecoglou slams 'unacceptable' Spurs after 'terrible' loss at Brighton
- 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
Major markets tumble on heightened recession fears
Global equities, oil prices and bitcoin plunged Monday on heightened recession fears triggered by runaway inflation.
The dollar, however, gained versus major rivals, benefiting from its status as a haven investment and expectations of aggressive interest-rate hiking from the Federal Reserve.
Bond yields also rose, with 10-year US Treasuries above 3.3 percent and Italy's 10-year debt breaking four percent for the first time in more than eight years.
The US currency struck a 24-year peak against the yen before retreating, while it broke above 78 Indian rupees for the first time. It jumped one percent versus the pound.
"The hangover from a higher-than-expected US inflation reading is continuing to cause scissoring pain throughout the markets, as it extinguishes the hope the US Federal Reserve might be able to take its foot off the pedal on interest rate rises," noted AJ Bell investment director Russ Mould.
US and European stocks had already tumbled Friday following the inflation data, with Asia following suit Monday.
European stock markets extended pre-weekend losses with drops of over two percent, while London took a hit also from data showing the UK economy contracted in April for a second month in a row.
Wall Street also tumbled, with the blue-chip Dow down around 2.3 percent in late morning trading and the tech-heavy Nasdaq falling nearly four percent.
World oil prices, whose surge has contributed massively to soaring inflation, slid around 1.5 percent as the high cost of living increased recession expectations.
The possibility of more Covid restrictions in China's biggest cities also weighed on crude futures as the country is a major oil consumer.
Fresh coronavirus outbreaks in Shanghai and Beijing have seen authorities reimpose containment measures.
"This has fed into a narrative that the global economy will slow even further at a time when prices are showing little sign of doing the same," said market analyst Michael Hewson at CMC Markets UK.
- Bitcoin crash -
Bitcoin tumbled to an 18-month low of under $23,000 as investors shunned risky assets in the face of the vicious global markets selloff.
The unit took a heavy knock also from news that cryptocurrency lending platform Celsius Network paused withdrawals, citing volatile conditions.
"It is not very surprising to see such a strong downturn as we have noticed an increased correlation over the last few years between traditional stocks, which have also tanked recently, and the cryptocurrency market," noted XTB chief market analyst Walid Koudmani.
Patrick O'Hare, analyst at Briefing.com, said the carnage in the crypto market "is compounding worries about growth prospects due to the reduced wealth effect that also incorporates falling stock and bond prices."
Investors were left surprised Friday when data showed US inflation jumped to 8.6 percent in May, the fastest pace in more than 40 years, as the Ukraine war further fuelled energy and food prices.
The reading has led to fervent speculation that the Fed will now be contemplating a single interest-rate lift of 75 basis points at its meeting this week.
With the central bank forced to be more aggressive, there is heightened concern that the US economy could be sent into recession next year.
"The market is now thinking much more about the Fed driving rates sharply higher to get on top of inflation and then having to cut back as growth drops," said SPI Asset Management's Stephen Innes.
- Key figures at around 1530 GMT -
New York - Dow: DOWN 2.3 percent at 30,663.44 points
EURO STOXX 50: DOWN 1.9 percent at 3,444.93
London - FTSE 100: DOWN 1.5 percent at 7,205.81 (close)
Frankfurt - DAX: DOWN 2.4 percent at 13,427.03 (close)
Paris - CAC 40: DOWN 2.7 percent at 6,022.32 (close)
Tokyo - Nikkei 225: DOWN 3.0 percent at 26,987.44 (close)
Hong Kong - Hang Seng Index: DOWN 3.4 percent at 21,067.58 (close)
Shanghai - Composite: DOWN 0.9 percent at 3,255.55 (close)
Dollar/yen: DOWN at 134.13 yen from 134.42 yen late Friday
Euro/dollar: DOWN at $1.0433 from $1.0526
Pound/dollar: DOWN at $1.2161 from $1.2309
Euro/pound: UP at 85.78 pence from 85.39 pence
Brent North Sea crude: DOWN 1.5 percent at $120.13 per barrel
West Texas Intermediate: DOWN 1.6 percent at $118.72 per barrel
burs-rl/pvh
G.M.Castelo--PC