SINGAPORE/LONDON - Global stocks headed for a third straight day of losses on Tuesday and the dollar rose after more US data reinforced the belief among investors that the Federal Reserve might stick longer with aggressive interest rate rises.
MSCI's world index fell 0.3 percent, led by tech stocks which are often more sensitive to broader shifts in sentiment.
Europe's STOXX tech sub index lost 0.3 percent and Korea's tech-heavy KOSPI benchmark shed 1 percent.
The oil and gas sector also suffered after a near-3.5 percent slide in crude oil prices overnight. Shell, BP and TotalEnergies were each down around 1 percent, and were among the biggest drags on the pan-European index.
Having hit an an over three-month high last Thursday, MSCI's world index is now entering what was shaping up to be a third straight session of decline.
Data released on Monday showed US services industry activity unexpectedly picked up in November following a robust US payrolls report published Friday - all of which raised doubts over whether the Fed would go for smaller hikes in interest rates just yet.
"A reassuring trend was in place - policy tightening, leading to growth slowdown leading to slower inflation - which allowed this correction in risk assets and the dollar," said Samy Chaar chief economist at Lombard Odier.
"Then we had two important bits of data that went the other way, a good job report, non manufacturing ISN, which if not calling that trend into question, do show there will be bumps in the road."
Aggressive US rate increases earlier in the year had caused stocks to tumble and US treasury yields and the dollar to soar.
The dollar, on Tuesday, held firm against most peers. The greenback was at 136.6 yen, steady after a 1.8 percent jump the previous day thanks in part to the services data, while the euro was at $1.0493 having fallen 0.45 percent the previous day.
Elsewhere, the Reserve Bank of Australia raised interest rates to decade highs and stuck with a prediction of further hikes ahead, quashing any thought it was near to pausing. The Australian dollar gained 0.3 percent and the 10-year bond yield ticked up a little.
The US 10-year yield was steady at 3.5735 percent after jumping nearly 10 basis points on Monday following the services data .
Oil prices edged up, as the implementation of sanctions on Russian seaborne crude oil eased concerns about oversupply.
Crude futures suffered their biggest daily drop in two weeks on Monday, after the US service sector data raised worries that the Fed could continue its aggressive tightening for a while longer.
Brent crude futures ticked up 0.36 percent to $82.96 a barrel. US crude rose 0.6 percent to $77.36.
Gold was at $1,770 an ounce having hit a five-month high over $1,809 on Monday.
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