Markets Cautious Amid Middle East Tensions and Upcoming Economic Data

US Treasuries and European bonds rallied as Middle East conflict drove investors to havens. Stocks stalled after recent gains.

Israel intensified air strikes on Hamas while missiles were fired at Israel from Lebanon, raising worries of regional escalation.

A European stocks rally stalled on disappointing corporate updates from LVMH and Fresenius Medical Care.

Softer Fed commentary raised hopes for fewer rate hikes. Minutes and US inflation data due this week may provide hints on policy outlook.

Investors monitored geopolitics as Biden vowed support for Israel. Oil held onto gains but gold was steady. Asian stocks advanced, led by South Korea.