NEW YORK: Investors aggressively sold equities worldwide on Tuesday, after China's market posted its worst day in five years and oil prices fell to levels not seen since 2009.
US and European shares were down for a second day in a row, in part due to concern that the decline in oil suggested global economic weakness and as Greece's equity market slumped 12 percent on political turmoil.
Chinese shares, which had recently touched a three-and-a-half-year high, had their biggest daily percentage loss in more than five years and the yuan currency took its biggest hit against the dollar since 2008, adding to the gloom pervading emerging markets.
Brent crude, which has fallen more than 40 percent in the last six months, slipped to a five-year low of $65.29 on worries over a supply glut before rebounding slightly. Oil prices have been under pressure as the dollar has strengthened and after the Organization of the Petroleum Exporting Countries decided against an output cut.
"To some extent, a drop in oil prices of course is positive, but there comes a point at which people begin to be concerned whether the drop is too much, too fast and can there be unintended consequences of it," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
Brent crude was last up 20 cents, or 0.3 percent, at $66.39 a barrel. US crude was last up 0.73 percent, at $63.51 per barrel.
MSCI's all-country world equity index, which tracks shares in 45 nations, was last down 0.78 percent at 418.41 points. The FTSEurofirst 300 index of top European shares provisionally closed down 2.2 percent at 1,364.74.
Political unrest rose in Greece after the government brought a presidential vote forward in a political gamble that raised uncertainty over the country's transition out of its bailout. Greek sovereign bond yields, which move inversely to prices, shot higher.
The dollar was on track for its largest one-day loss against the yen since June 2013, as investors booked profits after sharp gains in recent weeks and a day after comments by some Federal Reserve policymakers suggested that the Fed will maintain its pledge to keep rates near zero for a "considerable time." The Fed is to hold its last meeting of the year next week.
The drop in oil and equity markets fueled a rally in safe-haven US Treasuries. Long-dated US government bond yields fell to their lowest level in roughly two months, at 2.84 percent. The benchmark 10-year note was last up 15/32 in price to yield 2.2 percent.
The S&P 500 was last down 0.85 percent at 2,042.79. The dollar index, which tracks the greenback versus a basket of six currencies, fell 0.74 percent, to 88.382.
Gold rose 2 percent and hit its highest since late October on the pullback in the dollar and equity markets. Spot gold prices was last up 2.21 percent, to $1,229.36 an ounce.
Oil prices continue to drop; stocks tumble worldwide
Oil prices continue to drop; stocks tumble worldwide
AI use reaches 91% in Middle East hospitality: PwC survey
RIYADH: The use of artificial intelligence in the Middle East’s hospitality sector is accelerating, with 91 percent of industry leaders already using or piloting AI-related tools, a new survey showed.
In its latest report, professional services firm PwC said only 3 percent of tourism and hospitality organizations across the region have achieved full-scale, enterprise-wide implementation of AI technologies.
PwC noted that countries across the Middle East are rapidly deploying AI and smart digital technologies to enhance visitor experiences and strengthen the tourism and hospitality sector’s contribution to national economic transformation agendas.
The findings reflect a broader regional trend, as countries such as Saudi Arabia seek to position themselves as tourism and technology hubs as part of efforts to reduce reliance on crude oil revenues.
Earlier this month, a separate PwC report found that artificial intelligence use among the workforce in the Middle East continues to rise, with 75 percent of employees in the region using AI in their jobs over the past 12 months.
Commenting on the latest findings, Moussa Beidas, AI Go-to-Market Lead & Future Impact Center co-sponsor at PwC Middle East, said: “To realize AI’s promise, the industry must move beyond pilots and proofs of concept. True impact comes when intelligence is woven into every decision – empowering teams, optimising systems and elevating experiences.”
He added: “The leaders who turn AI from a tool into an organizational mindset will shape the next era of tourism and hospitality.”
The survey found that 74 percent of organizations in the Middle East’s hospitality sector now have dedicated AI budgets, signaling a shift from experimentation toward more structured and strategic adoption.
About 85 percent of respondents reported measurable improvements in cost savings and operational efficiency through the use of AI technologies.
However, challenges remain. Some 73 percent of participants cited a shortage of employees with AI expertise or experience in managing digital transformation, while 85 percent said they face difficulties integrating AI tools with outdated technology systems.
According to PwC, AI adoption in tourism and hospitality is being driven primarily by a focus on enhancing the customer experience, with 97 percent of respondents citing it as their main motivation.
Beyond guest engagement, more than 70 percent of hoteliers identified operational resilience and employee productivity as key drivers, highlighting AI’s growing role in improving internal efficiency and workforce effectiveness. More than 60 percent of participants also said they view AI as a way to differentiate from competitors.
“AI is redefining how destinations, hotels and travelers connect. The winners won’t be those who collect the maximum data, but those who use it intelligently – to make every interaction seamless, ethical and valuable,” said Marco Rentsch, hospitality leader, PwC Middle East.
He added: “For industry leaders, this means moving from disconnected systems to connected intelligence, where AI doesn’t replace human judgment and interaction, but amplifies it to create trust, efficiency and new forms of value across the entire travel ecosystem.”
