Oil could jump to $120-130pb range if Iran gets involved [Video]
|Stocks gained, and bonds fell yesterday on US and allies’ efforts to deescalate tensions in the Middle East. Yet Israel told the US ‘to embrace for a long war’. Gold, US treasuries and franc could rapidly jump in case of further escalation of tensions.
The Gaza situation is not helping to improve relations between the US and China as the US considers further limit China’s – and its military’s - access to advanced chips.
On the data front, the Empire Manufacturing index showed a slower-than-expected contraction in October, and the retail sales data for September will be released today. A strong sales data could boost optimism if the Federal Reserve (Fed) speakers maintain their expectation that the Fed has done hiking the interest rates. But nothing is less sure with the Middle East situation. If oil prices spike to unbearable levels, inflation expectations would take a lift.
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