Stocks on Edge After Attacks as Havens Pare Gains – Europe Market Wrap

An escalation of Middle Eastern tensions kept financial markets on edge, while haven assets such as Treasuries and the dollar lost some of their early gains when Iranian media sought to minimise the impact of Israeli attacks.

Oil prices fell sharply after previously rising above $90 per barrel. The currency moved only little higher. Treasury yields have halved an early move that brought the 10-year yield 14 basis points down after Israel conducted a retaliation assault on Iran less than a week after Tehran’s missile and drone onslaught, according to two US sources.

US equities futures have also begun to pare losses, with S&P 500 contracts down 0.4% and Nasdaq 100 prices down 0.7%.

The latest changes bring a gloomy week for markets to a close after robust economic indicators and hawkish Fedspeak caused investors to rethink the timing and scope of a much-anticipated shift to looser monetary policy.