Israel Will Respond In The Manner Of Our Choosing, At The Time And Place Of Our Choosing

Today marks the one-year anniversary of the attack by Hamas on Israel, which resulted in the deaths of 1,200 people and the capture of 250 hostages, some of whom remain in captivity. The ensuing assault on Gaza has led to the deaths of tens of thousands, according to Palestinian officials, and has sparked fears of a regional conflict. Israel's defense minister has stated that the country's response to last week's Iranian missile attack will come "in the manner of our choosing, at the time and place of our choosing." This has led to concerns about potential supply issues and has caused oil prices to edge higher. However, oil prices have since fallen below Friday's highs as the market awaits Israel's response. The re-opening of Chinese markets after a week-long holiday will be closely watched for its impact on oil prices. Despite escalating tensions in the Middle East, risk appetite was boosted on Friday by signs of resilience in the US economy. The US labor report showed that 254,000 jobs were created in September, well above market expectations, and the unemployment rate ticked lower to 4.1%. This has led to expectations of a more moderate pace of Fed easing in the coming months, causing Treasury yields and the USD to rise to their highest levels since August. The market is now facing the next round of US data with more confidence about the relative strength of the US economy.