- 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
- Bosnia floods kill 14 people
EU stocks sag on prospect of more Russia sanctions
EU stocks sagged on Tuesday after Brussels proposed further sanctions against Russia in response to killings in the Ukrainian town of Bucha that have prompted international condemnation.
Wall Street also ended lower after a top Federal Reserve official said the central bank could act more aggressively against inflation, while Asian equity markets rose. The dollar was mixed against major rivals.
Frankfurt stocks shed 0.7 percent while Paris slumped 1.3 percent after the European Union signaled it wants to impose sanctions on Russian coal and shipping.
"Tensions between Moscow and the West have ticked up, and that has prompted a decline in equities," said market analyst David Madden at Equiti Capital, pointing to a thinly veiled threat by Russian President Vladimir Putin to withhold food exports to "hostile" nations.
Russia is a major exporter of wheat, as is Ukraine, where production is likely to be severely disrupted due to the invasion.
The EU however did not announce measures targeting Moscow's oil exports.
- 'Pressure is growing' -
Both Brent North Sea and WTI oil contracts dipped on Tuesday, after the prospects of sanctions on Russia crude had sent oil prices sharply higher Monday.
While coal sanctions are likely to have a limited impact, "the pressure is growing for this commitment to be extended to oil and gas supplies," said market analyst Michael Hewson at CMC Markets UK.
"It is becoming ever clearer that Russia is likely to become increasingly more isolated as sanctions get tightened and widened further, with the prospect that inflationary pressure in the global economy will remain more persistent in the coming months," he added.
The additional EU sanctions came days after dozens of bodies were found on the streets in Bucha, northwest of Kyiv, though some countries remain worried of the potential fallout from targeting Russia's economy.
Ukrainian President Volodymyr Zelensky blames Russian troops for the killings, but the Kremlin has denied responsibility.
Meanwhile a source told AFP that the United States, in coordination with the G7 and European Union, plans to ban "all" new investments in Russia on Wednesday, while the US Treasury said Washington has barred Russia from making debt payments using funds held at American banks.
In New York, major stock indices retreated after Fed Governor Lael Brainard said the US central bank was "prepared to take stronger action" to reduce inflation that has hit levels not seen since the 1980s.
The remarks helped lift the yield on the 10-year US Treasury note above 2.5 percent, well above where it was throughout the Covid-19 pandemic.
"We already had the yields moving higher but after Lael Brainard's comments, it just poured some fuel on the fire," said Brad Bechtel, managing director at FX Jefferies.
US traders on Wednesday will be keeping a close eye on the minutes from the Fed's most recent policy meeting, hoping for an insight into officials' thinking over future monetary policy.
After the Fed's expected quarter-point interest rate hike last month, central bankers have signaled a half-point increase is possible in May in light of soaring inflation, as strong jobs growth and other data suggest the US economy remains robust enough to absorb higher borrowing costs.
- Key figures around 2145 GMT -
New York - Dow: DOWN 0.8 percent at 34,641.18 (close)
New York - S&P 500: DOWN 1.3 percent at 4,525.12 (close)
New York - Nasdaq: DOWN 0.8 percent at 14,204.17 (close)
EURO STOXX 50: DOWN 0.8 percent at 3,917.85 (close)
London - FTSE 100: UP 0.7 percent at 7,613.72 (close)
Frankfurt - DAX: DOWN 0.7 percent at 14,424.36 (close)
Paris - CAC 40: DOWN 1.3 percent at 6,645.51 (close)
Tokyo - Nikkei 225: UP 0.2 percent at 27,787.98 (close)
Hong Kong - Hang Seng Index: Closed for a holiday
Shanghai - Composite: Closed for a holiday
Brent North Sea crude: DOWN 0.8 percent at $106.64 per barrel
West Texas Intermediate: DOWN 1.3 percent at $101.96 per barrel
Euro/dollar: DOWN at $1.0903 from $1.0978 late Monday
Pound/dollar: UP at $1.3071 from $1.3114
Euro/pound: DOWN at 83.38 pence from 83.65 pence
Dollar/yen: UP at 123.60 yen from 122.78 yen
burs-rl/gw/cs/hs
E.Raimundo--PC