- Dupont set for Toulouse return after post-Olympic holiday
- French rugby bosses tighten discipline after nightmare Argentina tour
- Visitors to get rare view of Rome's Trevi Fountain
- Man City and Premier League both claim victory in legal case
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- Neeskens, tough midfielder in Cruyff's Ajax and Dutch teams
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- Oil prices extend gains on Mideast tensions, Wall Street retreats
- Ex-Dutch football star Johan Neeskens dies
- Man Utd battling to improve fortunes, says Evans
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- Masood, Abdullah centuries lift Pakistan to 328-4 in first England Test
- Hurricane Milton strengthens fast, threatens Mexico, Florida
- Tunisia's President Saied set for landslide election win
- Barca hoping to return to Camp Nou 'by end of year'
- Trump to open second golf course at Scotland resort in summer 2025
- Super-sub Jhon Duran rewarded with new Aston Villa deal
- US duo win Nobel for gene regulation breakthrough
- Masood hits first ton for four years to power Pakistan to 233-1
- Fritz wins delayed match to reach Shanghai Masters third round
- Naomi Osaka pulls out of Japan Open with back injury
- China to flesh out economic stimulus plans after bumper rally
- Artist Marina Abramovic hopes first China show offers tech respite
- Pakistan 122-1 at lunch in first England Test
- Kazakhs approve plan for first nuclear power plant
- World marks anniversary of Oct. 7 attack on Israel
- 'Second family': tennis stars hunt winning formula with new coaches
- Philippines, South Korea agree to deepen maritime cooperation
- Mexico mayor murdered days after taking office
- Sardinia's sheep farmers battle bluetongue as climate warms
- Japan govt admits doctoring 'untidy' cabinet photo
- Israel marks first anniversary of Hamas's October 7 attack
- Darvish tames Ohtani as Padres thrash Dodgers
- Asian markets track Wall St rally on jobs data
- Family affair as LeBron, Bronny James make Lakers bow
- Cancer, cardiovascular drugs tipped for Nobel as prize week opens
- As Great Salt Lake dries, Utah Republicans pardon Trump climate skepticism
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- 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
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Markets mostly hit by recession fear but China offers some light
Most markets fell again Thursday as traders fear that hefty rate hikes to rein in soaring inflation will spark a recession, though a slight improvement in Chinese data did provide a little cheer.
The rally enjoyed across the world last week appears to have given way to nervousness about the economic outlook, while the Ukraine war continues to sow uncertainty.
The surge in inflation to multi-decade highs has forced central banks to swiftly tighten pandemic-era monetary policies, dealing a hefty blow to equities, particularly tech firms who are susceptible to higher borrowing costs.
The Federal Reserve has already sharply lifted rates and is expected to announce a second successive 75-basis-point lift next month.
There had been hope that policymakers would ease off their hikes as economies show signs of slowing, but analysts say some officials are less concerned about a recession than letting prices run out of control.
Fed boss Jerome Powell this month admitted the moves could lead to a contraction.
On Wednesday, Cleveland Fed chief Loretta Mester said she was keen to see the benchmark rate hit 3-3.5 percent this year and "a little bit above four percent next year".
"There are risks of recession," she told CNBC. "We're tightening monetary policy. My baseline forecast is for growth to be slower this year."
The threat of an extended period of elevated inflation and rate hikes has left traders weary, and markets in the red.
"With rapidly slowing US growth momentum and a Fed committed to restoring price stability, a mild recession, starting in the fourth quarter of 2022, is now most likely," Nomura's Andrew Ticehurst said.
"High US inflation appears to be a political as well as economic problem, and we don’t expect the Fed to be quick to blink as risk assets wobble."
- China support hope -
Wall Street ended on a tepid note Wednesday, unable to bounce back from the previous day's plunge.
And Asia also struggled, with Hong Kong, Tokyo, Sydney, Seoul, Singapore, Taipei, Manila and Wellington all down. London, Paris and Frankfurt tumbled at the open.
However, Shanghai ended more than one percent higher. That came after official figures showed a forecast-beating improvement in China's services sector thanks to the easing of painful Covid-19 restrictions in major cities including Shanghai and Beijing.
The non-manufacturing Purchasing Managers' Index surged to 54.7 points in June, the first time it has been above the 50-point growth mark since February.
The manufacturing gauge hit 50.2, which was also its first time in growth since February and provided some hope that the world's number two economy could be picking up after the pain caused by lockdowns.
SPI Asset Management strategist Stephen Innes added that the government and People's Bank of China could now have some room to provide growth support.
"With (consumer price) inflation low in China relative to its peers, there is plenty of scope for monetary and fiscal conditions to loosen in the second half of the year, supporting activity," he said in a note.
Crude fluctuated after dropping on Wednesday as data showed demand in the United States appeared to be softening even as the driving season gets under way, and as recession fears begin to kick in.
"The higher price environment appears to be doing its job when it comes to demand," Warren Patterson, of ING Group NV, said.
The drop comes as OPEC and other major producers including Russia prepare to meet on their output agreement, with most predicting they are unlikely to open the taps further.
"I am not expecting any surprises from the group. I would imagine it will be a fairly quick meeting," Patterson said.
- Key figures at around 0720 GMT -
Tokyo - Nikkei 225: DOWN 1.5 percent at 26,393.04 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 21,847.43
Shanghai - Composite: UP 1.1 percent at 3,398.62 (close)
London - FTSE 100: DOWN 1.5 percent at 7,202.54
West Texas Intermediate: DOWN 0.2 percent at $109.60 per barrel
Brent North Sea crude: DOWN 0.5 percent at $115.70 per barrel
Dollar/yen: DOWN at 136.33 yen from 136.66 yen Wednesday
Euro/dollar: UP at $1.0445 from $1.0444
Pound/dollar: UP at $1.2148 from $1.2119
Euro/pound: DOWN at 86.00 pence from 86.15 pence
New York - Dow: UP 0.3 percent at 31,029.31 (close)
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