Markets are braced for a jump in oil prices after Hamas launched a deadly terrorist attack on Israel, sparking fears of a “spiralling” crisis across the Middle East. Analysts warned the price of Brent crude could jump by 5 per cent when trading begins on Monday, amid fears about future supply.
Smoke rises from the Israeli raids on in Gaza City. Markets are braced for a spike in the oil price after Hamas launched a deadly terrorist attack on Israel.The Australian sharemarket is set to open higher, with futures at 7.08am AEDT pointing to a rise of 58 points, or 0.8 per cent, at the open. It closed 0.4 per cent higher at 6954.2On Friday the S&P 500 climbed 1.2 per cent after charging back from an earlier drop of 0.9 per cent. The Dow Jones Industrial Average rose 288 points, or 0.
Wall Street hates high interest rates because they knock down prices for all kinds of investments. And even though the job market hasn’t faltered yet, despite the Fed pulling its main interest rate to the highest level since 2001, high rates work to extinguish high inflation by slowing the entire economy. That raises the risk of a recession down the road.
The Fed should be focusing on such moderate wage gains, rather than the growth in jobs, said Brian Jacobsen, chief economist at Annex Wealth Management.Average hourly earnings rose at the slowest rate, on a year-over-year basis, since June 2021. Some economists said the Fed may also not need to do as much with its overnight interest rate after financial markets have already done some of its work for it. The 10-year Treasury is the centerpiece of the bond market, and it’s already leaped sharply from less than 3.50 per cent during the summer and from just 0.50 per cent early in the pandemic.The higher 10-year yield raises rates for mortgages and all kinds of other loans, which can put the brakes on the economy and inflation.
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