Prior to US data, Stocks Waver With Focus on the Middle East – Europe Market Wrap

Stocks struggled to find direction as traders weighed the possible impact of the Middle East war and a slew of US economic data. Oil has fallen from its highest level in six months.

S&P 500 futures reversed a 0.4% gain after rising tensions between the US and Iran fuelled losses in the benchmark on Thursday. The Dollar is set for its best week since November. Gold traded above $5,000 per ounce. Brent crude slipped toward $71 per barrel, reducing gains from Monday to almost 5%.

The US military is deploying a huge array of forces in the Middle East as Trump increases pressure on Tehran to reach an agreement on its nuclear program. While the rise in oil prices originally influenced broader risk assets, traders remark that current geopolitical tensions have had little impact on markets.

UK gilts outpaced treasuries and rivals in Europe. Britain had its largest budget surplus on record, thanks to an increase in capital gains tax inflows and fewer debt payments, which aided the government’s attempts to reduce its debt burden. British enterprises also increased output at the quickest rate in nearly two years.

European markets were on track for a fourth consecutive week of gains, boosted on Friday by luxury shares such as Moncler, which rose 11% in Milan on solid earnings.