European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
ECB May Stop Rate Hikes After December, Capital Economics Says 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Trump to Ease U.S. Fuel-Economy Standards 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
China Consumer Stocks Near Decade Lows as AI Shares Surge 
South Korea Tax Windfall Could Top 50 Trillion Won on Chip Boom 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Fed Unveils Stablecoin Rules Under GENIUS Act 
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MSCI's global equities index dropped Tuesday as geopolitical tensions led investors to flee riskier assets. Oil futures surged amid fears of supply disruptions after Iran's missile launch, which followed Israel’s actions against Hezbollah in Lebanon. Both U.S. crude and Brent oil closed higher, gaining over 2%.
Wall Street's Mixed Reaction
While U.S. stocks closed above session lows, Treasury yields also pared declines on hopes that the Middle East conflict would not escalate further. The Dow Jones Industrial Average fell 173.18 points (0.41%) to 33,520.97, the S&P 500 lost 53.73 points (0.93%) to 4,108.75, and the Nasdaq Composite dropped 278.81 points (1.53%) to 17,910.36. The CBOE Volatility Index hit 19.25, its highest level since September 9.
Geopolitical Tensions and Domestic Concerns
The missile attack heightened safe-haven demand for the U.S. dollar and gold, with the dollar index rising 0.45% to 101.20 and gold prices climbing more than 1%. Compounding investor anxiety were concerns about potential disruptions to U.S. ocean shipping from a dockworkers' strike on the East and Gulf Coasts and the aftermath of Hurricane Helene.
“Markets were priced for perfection," said Carol Schleif, Chief Investment Officer at BMO Family Office. “Then you throw in the third factor of Iran firing missiles.”
Safe-Haven Assets Gain Ground
Spot gold rose 0.91% to $1,658.39 an ounce, with U.S. gold futures increasing 0.95% to $1,661.10. The Japanese yen and Swiss franc also saw gains as investors sought safer assets amidst heightened tensions and market volatility.
