- Oil prices rose after Hamas launched a surprise attack on Israel, raising fears of a wider conflict. Investors avoided traditionally risky assets like stocks in favour of gold, bonds, and the dollar.
- West Texas Intermediate gained more than 5% before reversing course, and a dollar strength index gained 0.3%. Equity futures in the United States fell. The STOXX 600 index in Europe traded flat as shares of energy and defence companies such as Shell, BP, BAE, and Saab rose. Gold gained 1%.
- Even after the Bank of Israel announced an unprecedented market support programme, the Israeli shekel fell 2% to its lowest level in seven years. To support markets, the central bank intends to sell up to $30 bln in foreign exchange and extend up to $15 billion through swap mechanisms.
