Middle East Tensions Rattle Global Markets: Stocks, Bonds, Gold, and Oil Prices React

European stocks and US equity futures were volatile, while Treasuries dropped as traders monitored efforts to de-escalate the Israel-Hamas conflict. Technology shares declined in Europe amid reports of potential further restrictions on China's access to advanced semiconductors. Energy stocks were boosted by recent gains in oil prices. Polish equities and the zloty rallied as pro-European opposition parties appeared on track to unseat the nationalist government. Markets were relatively stable as investors awaited further developments in the Middle East, with the conflict adding to existing concerns about the economy and interest rates. US officials engaged in talks with Middle Eastern nations to contain the conflict, which could potentially escalate and involve Iran. In Asia, stocks slipped in mainland China despite the central bank injecting liquidity. Traders are also monitoring economic data and central bank comments for policy clues.