NEW YORK - World shares rebounded and oil prices fell on Tuesday on news of a possible Egyptian-brokered cease-fire in the Gaza Strip, but Israel later said an agreement was still not in place, sending US stocks lower.

World equity markets turned positive after a Hamas official said a cease-fire was expected to take effect later in the day, although Israel said no deal had been reached.

Wall Street subsequently slipped back into negative territory, pulled lower by comments from Federal Reserve Chairman Ben Bernanke, who said the US economy faced a series of "headwinds." He cited damage to the US housing sector and mortgage markets, and a sharp tightening in credit.

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