World equity markets were higher on Tuesday but pared gains after United States Congressional leaders voiced support for military intervention in Syria.
Reuters reported on Tuesday, that while bond yields rose and the dollar gained on strong US data.
Wall Street stocks initially rallied on opening after US President Barack Obama said over the weekend that he would seek Congressional approval for a Syria strike.
This delayed the threat to Middle East stability and oil supplies, but comments from Republican House Speaker John Boehner expressing support for action caused equities to pare gains.
The US congress returns from its summer recess on September 9, and will vote on authorising a strike on Syria. While Obama has been pushing Congress to back his plan, passage is by no means certain.
“Syria is the key thing facing markets, and stocks don’t know what to expect when there’s geopolitical uncertainty, especially with respect to the Middle East,” said Mark Martiak, senior wealth strategist at Premier Wealth/First Allied Securities in New York.
“All you know is that you can expect volatility, and that’s why we’re seeing stocks come off their highs.”