Global Markets React to Middle East Tensions and U.S. Economic Data

MSCI's global equities index dropped slightly as oil prices pared gains amid tensions in the Middle East. The dollar rose following upbeat U.S. employment data. Investors are wary of potential further geopolitical developments, while U.S. Treasury yields and Wall Street indices showed mixed results. Energy sector signals fluctuated amid global events.

MSCI's global equities index saw a minor dip on Wednesday, amid escalating Middle East tensions and fresh U.S. economic data. While oil prices initially rose over concerns of compromised supplies, U.S. crude inventory build-up curbed gains. The dollar hit a three-week high following robust U.S. private payrolls data.

Investors awaited Israel's response to Iran's largest direct missile strike, which saw over 180 ballistic missiles fired. Meanwhile, the ADP employment report indicated stronger-than-expected job growth, boosting the dollar. Despite the geopolitical uncertainties, U.S. Treasury yields climbed, pointing to a stable labor market.

Other notable developments included a strike by 45,000 U.S. dockworkers impacting East and Gulf Coast ports, with Wall Street indices showing minor gains. Energy markets showed U.S. crude at $70.10 a barrel and Brent at $73.90. In the currency market, the euro weakened against a strengthening dollar, while the dollar surged against the Japanese yen. Gold prices saw a decline in both spot and futures trading.

(With inputs from agencies.)