* Dollar strengthens on growing Fed rate hike expectations
* Brent inches back after Monday's 1-yr high on Russia
* European stock markets start lower
* Samsung slumps after telling carriers to stop selling
* Sterling hits fresh three-decade low as Brexit woes weigh
By Marc Jones
LONDON, Oct 11 World shares tapped the brakes on
Tuesday as oil prices eased back from their highest level of the
year, while Britain's sterling took another dive as UK and EU
ministers traded fresh Brexit blows.
The dollar was on the rise again as growing
expectations of a U.S. rate hike before the end of the year
pushed up Treasury yields - the benchmark for the
world's borrowing costs - to the highest since early June.
European bonds managed to resist the selling but stocks
They were down 0.2 percent despite broadly
reassuring German sentiment data and a push towards
a record high from London's FTSE as the pound's tumble
continued to improve the look of its international firms'
Sterling was back under $1.23 and 90 pence per euro
while the dollar muscled its way to an 11-week
high as the rising rate hike bets came alongside waning support
for Donald Trump in the U.S. election race.
Saxo Bank's head of FX strategy, John Hardy said the
dollar's push and the pound's woes both looked set in for now.
On the pound he added: "The whole Brexit scenario is providing
the tailwinds here. Real money and real flows have to get out of
their exposures to sterling."
Sterling was not the worst performer for once however. South
Africa's rand slumped 3 percent and its bonds tumbled as
prosecutors issued Finance Minister Pravin Gordhan with a formal
summons in relation to a tax department investigation.
One of the other big global market drivers of recent weeks,
oil, eased off a one-year high, meanwhile, to 52.73 a barrel for
Brent and $51.01 for WTI as doubts lingered about
OPEC plans to cut production.
Goldman Sachs said in a note to clients on Tuesday that
despite a production cut becoming a "greater possibility",
markets were unlikely to rebalance in 2017.
In Asia overnight, MSCI's broadest index of Asia-Pacific
shares outside Japan ended down 1.1 percent, a
clear contrast to Japan as the Nikkei closed at its
highest in more than a month, thanks to a weaker yen.
Most of Asia's damage was done by South Korea and
Samsung as it slumped 7.4 percent after it halted
sales of its Note7 phones and told owners to stop using them
while it investigates reports of fires in the devices.
China's CSI 300 index advanced 0.2 percent and the
Shanghai Composite rallied 0.4 percent, after Beijing unveiled
guidelines to cut some of the massive amounts of corporate debt
at state-owned companies.
The yuan hit another six-year low meanwhile as the dollar
stood tall and market speculation of depreciation grew after the
Chinese central bank set a weaker official guidance rate for the
(Editing by Robin Pomeroy)