- As investors flocked to safe havens in response to indications that Israel is getting ready to invade Gaza on foot, Treasuries rose. While stocks and US equity futures fell, crude oil rose.
- In the wake of hotter-than-expected US consumer price data, the 10-year Treasury yield decreased by eight basis points, easing some of Thursday's strong spike. With the German 10-year yield decreasing seven basis points, European bonds also benefited. On worries that the Israel-Hamas conflict could destabilise the Middle East and constrain global supply, Brent crude increased by more than 3% and is on track to post its largest weekly gain since April.
- According to a source, an intensification of Israel's conflict with Hamas that involves Iran may drive crude oil prices to $150 per barrel and reduce global economic output by nearly $1 trillion. The likelihood of longer-term increases in US interest rates also decreased risk taking. The likelihood of another quarter-point Federal Reserve increase increased from closer to 30% on Wednesday to roughly 40% as a result of swap contracts.
- BoE Gov. Bailey: UK potential growth has declined.
