LONDON: The main international oil contract, Brent crude, fell below $70 per barrel on Tuesday for the first time since December 2021 amid concerns about slowing economic growth depressing fuel demand.

Brent crude slumped 3.7 percent in afternoon trading to $69.15 per barrel while the main US contract, West Texas Intermediate (WTI), tumbled 4.1 percent to $65.90.

Meanwhile, global stock markets diverged Tuesday as traders assessed the outlook for interest rates in the United States and Europe and awaited the US presidential debate. Wall Street’s main indices opened modestly after rallying on Monday following a plunge late last week. Monday’s strong gains on Wall Street followed a slump Friday after disappointing US jobs data rekindled fears the Federal Reserve had waited too long to begin cutting interest rates and the economy could fall into recession.

Investors were also looking ahead to US inflation data due Wednesday. “Tomorrow’s US inflation figures could be the next key test of investor sentiment,” noted AJ Bell investment director Russ Mould.

The Federal Reserve is widely expected to cut US interest rates at next week’s meeting but debate surrounds whether it will be by 25 or 50 basis points, with some arguing that going for the bigger option could suggest decision-makers are worried. “Financial markets have shifted their focus from bringing down inflation to shoring up economic growth,” said Saira Malik, chief investment officer at asset manager Nuveen.

“Market volatility has climbed amid downside surprises in macroeconomic data — especially labor market indicators.” Official data in Britain on Tuesday showed wages grew at the slowest pace in two years, indicating that the Bank of England could next week decide against cutting interest rates for a second meeting in a row.

The pound firmed against the dollar and euro on the data, while London’s FTSE 100 stock index — featuring numerous multinationals earning in the US currency — dropped. In the eurozone, Paris edged higher and Frankfurt slid in afternoon deals. The European Central Bank holds a monetary policy meeting on Thursday and is widely expected to deliver another interest rate cut. — AFP