Global stocks snapped higher on Tuesday, in line with a retreat in bond yields after Federal Reserve officials signaled the recent yield surge could justify caution onThe MSCI All-World index rose for a fifth day, up 0.5%, after having hit five-month lows last week, thanks in part to a 1.4% rise in Europe’s STOXX 600.
But investors were closely watching military clashes between Israel and the Palestinian Islamist group Hamas, after the latter unleashed a surprise assault at the weekend in which hundreds were killed and many abducted. “Markets are telling us at the moment we don’t need to be worried about an oil shortage, which is fair, and that there is - I would say - a modest increase in demand for safe-havens.”
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