Israeli TV channels said the death toll from the Hamas attack had climbed to 900. In Hamas-controlled Gaza, Israel has killed more than 500 people since Saturday.* Inside Israel, Hamas fighters were still holed up in several locations two days after they killed hundreds of Israelis and seized dozens of hostages in a raid that shattered Israel's reputation of invincibility.
* In a further sign of Israel's rapid shift onto a war footing, a cabinet member from Prime Minister Benjamin Netanyahu's Likud Party said it could set up a national unity government joined by opposition leaders within hours. * More than 10 Britons are feared dead or missing in Israel, the BBC reported, citing an official source, although foreign minister James Cleverly said he would not speculate on the number of British or dual nationals in the area.* Fears of a widening conflict threatened more volatility for investors, adding to uncertainty ahead of corporate earnings season and crucial U.S. inflation data later in the week.