A nervous watch has gripped markets as Israel prepares to roll troops into Gaza and worries mount that the conflict with Hamas will spill across borders. Iran in particular has warned of a regional escalation if attacks on Palestinians continue.
Brent crude stayed firmly above $90 a barrel on Monday, although it eased from a 1 1/2-week high hit very early in the session. Currencies though were mostly calm, with the eye-catching exception of the Israeli shekel, which slumped to its lowest in more than eight years. The ECB's next decision is due on Oct. 26, and there is plenty of room for more hawkish market pricing on interest rates, since investors had become convinced that hikes were done and a first rate cut would be coming by the middle of next year.
France Dernières Nouvelles, France Actualités
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