Arizona Tribune - Gold hits high, stocks retreat as investors seek safety

The dollar rallied against the euro and British pound as French and UK government borrowing costs hit multi-year highs.

Oil prices soared on stalled peace negotiations between Ukraine and major energy producer Russia, according to analysts.

On the corporate front, shares in Nestle retreated around two percent after the Swiss food giant sacked chief executive Laurent Freixe, citing an undisclosed romantic relationship with a direct subordinate.

Wall Street reopens Tuesday after a long holiday weekend, with all eyes on key US jobs data due Friday.

"September can be a strange month for financial markets, as stocks historically tend to underperform," noted Kathleen Brooks, research director at XTB traders.

"However, a selloff in the bond market and a rush to the dollar and gold are signs that investors are rushing into safe havens and liquid assets," she added.

Gold reached $3,501.59 an ounce Tuesday, beating its previous record of $3,500.10 in April.

France's long-term borrowing cost jumped to its highest level since 2011 -- or eurozone debt crisis -- as investors fret over a confidence vote next week that could topple the minority government.

The yield on 30-year government bonds topped 4.5 percent ahead of Monday's vote, which was called by Prime Minister Francois Bayrou to settle a budget fight but which he is tipped to lose.

The yield on 30-year UK government bonds hit the highest level since 1998 owing to worries over Britain's struggling economy.

Major stock markets in Asia and Europe slid, though there were some bright spots among individual companies.

On Hong Kong's Hang Seng index, the share price of Chinese e-commerce giant Alibaba rallied further following bumper results this week showing a surge in revenue from artificial intelligence operations.

"While US giants face mounting questions around AI monetization and stretched valuations, Chinese firms are showing tangible earnings lift from AI and cloud," Charu Chanana at Saxo Markets told AFP.

The Japanese corporate world was rocked Tuesday by the shock resignation of Takeshi Niinami, chief executive of alcoholic drinks group Suntory, over an illegal drugs probe.

Niinami, 66, was put under police investigation regarding "supplements he purchased under the belief that they were legal", Suntory president Nobuhiro Torii told a news conference.

Suntory brands include Jim Beam bourbon, Laphroaig whisky and Courvoisier cognac.

- Key figures at around 1025 GMT -

London - FTSE 100: DOWN 0.3 percent at 9,166.43 points

Paris - CAC 40: UP 0.1 percent at 7,713.03

Frankfurt - DAX: DOWN 1.3 percent at 23,731.07

Tokyo - Nikkei 225: UP 0.3 percent at 42,310.49 (close)

Hong Kong - Hang Seng Index: DOWN 0.5 percent at 25,496.55 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,858.13 (close)

New York - Dow: Closed Monday for a public holiday

Euro/dollar: DOWN at 1.1629 from $1.1705 on Monday

Pound/dollar: DOWN at 1.3387 at from $1.3547

Dollar/yen: UP at 148.68 from 147.27 yen

Euro/pound: UP at 86.87 pence from 86.57 pence

Brent North Sea Crude: UP 1.9 percent at $69.45 per barrel

West Texas Intermediate: UP 3.0 percent at $65.92 per barrel

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A.Clark--AT