Dubai Telegraph - Stock markets diverge as Hong Kong sinks, oil prices fall

New York's main indexes were mostly higher shortly after opening on continued optimism about the health of the US economy.

European stock markets were lower in mid-afternoon trading, pulled down by the earlier slide in Asia.

Hong Kong shares slumped after China's National Development and Reform Commission (NDRC) disappointed investors by not announcing any further stimulus measures.

"Financial markets are mostly in a risk-off mood on Tuesday, as China has stopped its drip feed of stimulus (and) commodity prices fall," said Kathleen Brooks, research director at XTB.

Oil prices sank almost three percent as doubts returned about Chinese demand and as Israel comes under international pressure not to strike Iranian oil installations.

It was fear about Israel's response to Iran's missile attack last week that on Monday had sent oil prices soaring to their highest levels since August.

But President Joe Biden has urged Israel not to attack Iran's oil facilities, fearing it could push up oil prices, in turn hitting the US economy and influencing the US election.

Global stock markets have been lifted in recent sessions as China announced a series of stimulus measures, boosting hopes of greater Chinese demand for goods including from oil, metals and luxury goods.

Share prices of companies across all three sectors slumped Tuesday, pushing Europe's main indices into the red.

European luxury and spirits companies were also hit as Beijing announced provisional tariffs on brandy imported from the European Union, in an apparent riposte to EU duties on Chinese electric cars.

Remy Cointreau -- whose brands include Louis XIII, Remy Martin and Cointreau -- tumbled more than six percent.

Pernod Ricard, which owns Martell cognac, dropped nearly four percent.

Louis Vuitton-maker LVMH, which owns Hennessy cognac, shed more than three percent and Gucci-owner Kering retreated over four percent.

Burberry shares retreated 5.6 percent in London. London was also pulled lower by energy companies.

US shares had slumped Monday after rallying the previous week, and that encouraged some "Pavlovian buy-the-dip interest" Tuesday morning, said Patrick O'Hare, an analyst at Briefing.com.

A better-than-expected jobs report last Friday showed the US economy is in strong shape, even if it watered down expectations for deep interest rate cuts in coming months.

US consumer and producer prices data towards the end of the week should provide further clues on the interest rate outlook, while third-quarter earnings season kicks off Friday.

In Asia, Shanghai closed up 4.6 percent despite the disappointment over the lack of new stimulus measures.

Analysts cautioned that the sizeable gain reflected the index catching up with other markets following a week-long national holiday in China.

"Market hopes of even more fiscal stimulus that reaches the 'big bang bazooka' level look dashed with few details on specific measures," said Heron Lim, at Moody's Analytics.

- Key figures around 1340 GMT -

New York - Dow: FLAT at 41,947.47 points

New York - S&P 500: UP 0.4 percent at 5,718.55

New York - Nasdaq Composite: UP 0.6 percent at 18,028.64

London - FTSE 100: DOWN 1.2 percent at 8,204.57

Paris - CAC 40: DOWN 0.7 percent at 7,524.39

Frankfurt - DAX: DOWN 0.2 percent at 19,063.49

Hong Kong - Hang Seng Index: DOWN 9.4 percent at 20,926.79 (close)

Shanghai - Composite: UP 4.6 percent at 3,489.78 (close)

Tokyo - Nikkei 225: DOWN 1.0 percent at 38,937.54 (close)

West Texas Intermediate: DOWN 2.9 percent at $74.88 per barrel

Brent North Sea Crude: DOWN 2.9 percent at $78.55 per barrel

Euro/dollar: UP at $1.0980 from $1.0973 on Monday

Pound/dollar: UP at $1.3105 from $1.3084

Dollar/yen: DOWN at 148.09 from 148.13 yen

Euro/pound: DOWN at 83.77 pence from 83.86 pence

A.El-Ahbaby--DT