Bonds & Stocks
Stocks fluctuated, bonds fell and oil rose as a flare-up in Middle East violence spurred concerns about an escalation of the nearly six-month war that has jolted global markets. The S&P 500 was little changed. The yield on 10-year Treasuries advanced one basis point to 4.70%.
Economy
As investors debate whether and when the Federal Reserve will raise interest rates, market expectations for further tightening are building around the world — and spelling trouble for bonds. Traders see borrowing costs rising faster in Japan, Canada, the euro zone and the UK than in the US over the next year. Of the 32 swap markets tracked by Bloomberg, two-thirds are priced for rate hikes, with South Korea leading the pack at more than 100 basis points.
World
The prospects for peace in the Middle East suffered a fresh setback, with President Donald Trump reportedly saying he is in no hurry to end the war with Iran and fighting flaring anew in Lebanon.