US stocks skid, oil surges on Middle East conflict

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US stocks skid, oil surges on Middle East conflict

© Reuters. FILE PHOTO: A reflection of passersby walking is seen on an electronic board showing Japan's Nikkei average outside a brokerage, in Tokyo, Japan, March 20, 2023. REUTERS/Androniki Christodoulou/File Photo

"The risk is higher oil prices, a slump in equities, and a surge in volatility supports the dollar and yen, and undermine 'risk' currencies," said analysts at CBA in a note.

Median forecasts are for a 0.3% gain in both the headline and core measures, which should see the annual pace of inflation slow a touch. Fed fund futures now implied an 86% chance rates would stay on hold in November, and had around 75 basis points of cuts priced in for 2024.

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