US stocks; Futures down as Middle East conflict sparks run for safe-haven assets

NEW YORK (Reuters): The United States stock index futures slipped on Monday as a growing conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 3 percent.

Israel’s troops were still fighting to recapture towns from Hamas gunmen who killed 700 Israelis and seized hostages, even as the country responded with its heaviest ever bombardment of the Gaza strip, killing more than 400 people.

Share market continues positive momentum from last week

Israel has acknowledged that the battle was taking longer than expected, more than two days after the militants burst across the fence from Gaza on a deadly rampage. US Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.

Traditional safe-haven assets including gold and the US dollar gained, while the growing uncertainty pushed crude prices higher. “The scale of the attack and loss of lives imply that the response is likely to last for a few months, potentially till year-end,” said Mohit Kumar, chief economist Europe at Jefferies.

US energy companies, including Chevron, Exxon Mobil, Marathon Oil and Occidental Petroleum , jumped between 2.1 percent and 3.7 percent in premarket trading as oil prices rose more than $3 a barrel.

The Nasdaq and the S&P 500 had posted weekly gains on Friday as mixed jobs reports kept investors on edge around the Federal Reserve’s interest rate outlook.