Oil Gains Despite Increasing Yields, US Stocks Wave – Europe Market Wrap
US stocks struggled to find direction as oil prices rose amid rising disruptions in energy markets caused by the Middle East war. The yield on 10-year Treasuries rose for the fourth consecutive day.
S&P 500 futures were barely changed after fluctuating between gains and losses. The greatest increase followed a report that Iran had told the US that it was willing to give up its stockpile of highly enriched uranium in exchange for “something good.” The action stalled in the absence of a signal from Washington.
Brent briefly pared an advance before resuming its climb above $83 a barrel. Previously, Iran threatened to escalate its retaliation against US strikes. The Dollar gained 0.1%. European stocks rose 0.6%. A benchmark for Asian shares lowered its 3.8% gain.
Developments in the US-Israeli conflict against Iran are once again forcing traders to reduce risk after sentiment improved in the previous session. Stress in energy markets is on the rise, with China attempting to preserve gasoline and Japanese refiners pressing for the release of strategic petroleum reserves.
A worldwide bond selloff offered no reprieve, with the 10-year Treasury yield rising 2 bps to 4.12%. Losses in Europe were greater, with 10-year rates rising four basis points or more in most markets. Gold rose above $5,150 per ounce. Bitcoin traded about $73,200.
