Strong U.S. data points to higher for longer rates
China GDP, retail sales beat forecasts
Oil climbs as hospital blast threatens to widen conflict

LONDON, Oct 18 Reuters Global shares steadied on Wednesday, while unease among investors about the risk of a widening conflict in the Middle East translated into a rise in the price of oil and gold.

Compounding the concern about the current geopolitical situation was the prospect of no respite any time soon from punishingly high interest rates, following U.S. data that showed consumer spending picked up in September.

Bond markets took a battering the previous day, after U.S. retail sales increased more than expected last month, cementing expectations that economic growth picked up more than expected in the third quarter.

Furthermore, China reported annual economic growth of 4.9 in the third quarter, beating forecasts for 4.4. Separate releases there painted a picture of a more resilient consumer, suggesting Beijing39;s stimulus measures may be paying off.

Investor sentiment was fragile, as Israeli and Palestinian authorities traded blame for the blast that killed hundreds at a Gaza hospital, complicating U.S. President Joe Biden39;s already fraught trip to the region.

The news helped push oil above 90 a barrel and fed a bid for gold, which usually struggles when bond yields rise, but did not overshadow the outlook for interest rates and inflation as the driving force for markets on Wednesday.

The dominant force…