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Global Stocks fall, oil jumps as tensions mount in the Middle East

Reuters  |  NEW YORK 

By Laila Kearney

NEW YORK (Reuters) - Global equity markets slid on Wednesday as U.S. warned that missiles "will be coming," in after a suspected chemical attack, and hit its highest in more than three years after said it intercepted missiles over

The fallout from new U.S. sanctions on have rattled investors and fears of military action were stoked after one of Russia's reiterated it would shoot down any U.S. missiles fired at

Trump, who has criticized for standing by Syrian Bashar al-Assad, shot back in a message on early on Wednesday.

"vows to shoot down any and all missiles fired at Get ready Russia, because they will be coming, nice and new and 'smart!'," he wrote in the post. "You shouldn't be partners with a Gas Killing Animal who kills his people and enjoys it!"

The Dow Jones Industrial Average fell 106.33 points, or 0.44 percent, to 24,301.67, the lost 3.53 points, or 0.13 percent, to 2,653.34 and the added 9.80 points, or 0.14 percent, to 7,104.10.

shares were up 0.2 percent as spoke in his second day of testimony before the The pan-European index lost 0.61 percent and MSCI's gauge of stocks across the globe shed 0.09 percent.

Emerging market stocks rose 0.04 percent. MSCI's broadest index of shares outside closed 0.08 percent higher, while Japan's Nikkei lost 0.49 percent.

Michael James, at in Los Angeles, said investor nerves were again rattled a day after easing on a more conciliatory tone over trade between Trump and Chinese But one report said early talks had already broken down.

"With Xi's comments yesterday calming some of the trade war concerns, some of that optimism is going away with the concerns over what the final outcome might be over U.S. involvement over Syria," James said.

Meanwhile, prices hit their highest in more than three years after Trump's latest comments.

U.S. crude rose 2.43 percent to $67.10 per barrel and Brent was last at $72.50, up 2.06 percent on the day.

prices began to climb on Trump's warning over Syria, then rallied further on a report that Saudi Arabia's air defense forces intercepted a missile over the capital

Aluminium prices extended their rally to a sixth straight session, hitting an 11-week peak, amid persistent worry about shortages after the U.S. imposed sanctions on Russia's Rusal.

The dollar fell, hitting a two-week low over lingering trade war worries with and domestic scandals swirling around Trump. [nL8N1RO27F]

The dollar index fell 0.2 percent, with the euro up 0.26 percent to $1.2386. [GVD]

The Russian rouble slumped as much as 2.5 percent against the dollar and even more versus the euro.

Spot gold added 1.9 percent to $1,364.40 an ounce. U.S. gold futures gained 1.65 percent to $1,368.10 an ounce, as safe-haven demand sharpened. Palladium, which has also benefited from expectations that sanctions on could hurt supply, rose further after climbing nearly 6 percent in the past two days.

yields slipped after U.S. consumer price data reinforced expectations the Federal Reserve will raise interest rates at a gradual pace.

Benchmark 10-year notes last rose 6/32 in price to yield 2.7771 percent, from 2.797 percent late on Tuesday.

(Additional reporting by and in London; Gertrude Chavez-Dreyfuss in New York, editing by and David Gregorio)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 21:34 IST
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