Conflict concerns weigh on stock indexes and bolster oil and US Debt

• Wall Street indexes ended lower, oil kept climbing, and U.S. borrowing costs fell on Tuesday as U.S. President Donald Trump left the Group of Seven summit early and investors awaited a series of interest rate decisions by major central banks. Trump returned to Washington a day before the summit ends as the Israel-Iran conflict intensified, saying U.S. patience was wearing thin but that he would not kill Iran's leader "for now."
• Yields on 10-year Treasuries fell, indicating stronger demand for a safe haven as investors weigh the conflict as well as prepare to parse Fed Chair Jerome Powell's tone at a scheduled update on Wednesday. Trump's early departure from Canada nixed hopes for more progress on issues like the tariffs he has promised to impose.
• "The market was anxious to hopefully hear updates on trade agreements out of the G7 and the news of Trump leaving early was disappointing, although we all know why," said Eric Sterner, chief investment officer at Apollon Wealth Management.
• "The market is paying attention to the (Middle East) conflict, but it feels that's contained to those two countries," Sterner said. "It does cause concern, especially if Iran does anything with the Strait of Hormuz," he added, noting that around 20% of the world's oil supply passes through that waterway. So far, there has been no noticeable interruption to oil flows, and Qatar said its production at the world's largest gas field was steady after an Israeli air strike led Iran to partially suspend production.
• S. crude continued to surge and settled 4.46% higher at $74.97 a barrel, while Brent rose to $76.54 per barrel, settling up 4.52% on the day. Stocks stayed under pressure, with the Dow Jones Industrial Average extending losses to end 0.70% lower on the day. The S&P 500 (SPX) fell 0.84% and the Nasdaq Composite shed 0.91%.

(Source: Reuters)