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

MSCI's global equities index fell slightly as the dollar rose and oil prices adjusted due to U.S. economic data and concerns over Middle East tensions following Iran's missile attack on Israel. U.S. President Joe Biden urged a proportional Israeli response, while economic indicators showed a stable U.S. labor market.

MSCI's global equities index dipped slightly on Wednesday, with the dollar rising and oil prices retracting earlier gains. Investors processed U.S. economic data while eagerly awaiting Israel's response to Iran's missile attack.

Oil prices increased amid fears of heightened Middle East tensions disrupting oil supplies but were capped by a significant rise in U.S. crude inventories. U.S. President Joe Biden urged Israel to respond proportionally to Iran's missile strikes.

U.S. labor market data revealed stronger-than-expected private payroll growth, lifting longer-dated Treasury yields. Wall Street experienced minor gains, while the dollar reached a three-week high against the euro.

(With inputs from agencies.)