The U.S. dollar rose and Treasury yields slipped on anxiety about a potential global trade war as the leaders of the Group of Seven countries met in Canada.

U.S. stocks ended higher though thanks mostly to gains in health care and consumer staples stocks.

G7 leaders met in Quebec with the U.S.’s trading partners furious over President Donald Trump’s decision to impose tariffs on steel and aluminum imports from allies like Canada, the European Union, and Mexico. With retaliation already being proposed, the risk to business confidence is a worry for investors.

“There are so many questions out there,” said Thomas Roth, head of Treasury trading at MUFG Securities America in New York. “There’s nervousness about the G7 summit and Trump’s North Korea meeting.”

An unprecedented U.S.-North Korea summit is also scheduled for June 12 in Singapore, with Washington seeking to pressure Pyongyang into abandoning its nuclear weapons program.

Expectations for another interest rate rise in the United States at next Federal Reserve policy meeting, and the prospect that the European Central Bank will soon signal a winding-down of its massive monetary stimulus could add to market volatility, investors said.

In late trading, the U.S. dollar rose 0.2 percent against a basket of currencies to 93.56, but fell 0.7 percent for the week, its steepest weekly fall in 10 weeks.

Against the yen, however, the dollar was last down 0.2 percent at 109.45.

The yield on benchmark 10-year Treasury notes US10YT=RR was 2.926 percent, down 0.3 basis point from late.

Stock investors appeared to put aside their worries about U.S. relations with its biggest trading partners for now.

The Dow Jones Industrial Average rose 75.12 points, or 0.3 percent, to 25,316.53, the S&P 500 gained 8.66 points, or 0.31 percent, to 2,779.03 and the Nasdaq Composite added 10.44 points, or 0.14 percent, to 7,645.51.

The pan-European FTSEurofirst 300 index lost 0.24 percent, while MSCI’s gauge of stocks across the globe shed 0.14 percent.

Oil prices fell, pressured by concerns about surging U.S. output and falling demand in China.

U.S. crude CLcv1 fell 21 cents to settle at $65.74 a barrel, while Brent LCOcv1 declined 86 cents to settle at $76.46.

Source: Reuters

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