Good morning. US stock futures ticked higher in Tuesday morning trading as investors assessed the impact and risk of a protracted conflict from the Israel-Hamas war.
⛽ Oil spikes on Israeli-Palestinian conflict
📝 Our report: Oil prices went on a rollercoaster ride, soaring 4%, after a surprise attack by Palestinian group Hamas on Israel stoked fears of an all out war that could take place in the Middle East. West Texas Intermediate and Brent Crude futures leapt to around $86 and $88 a barrel respectively. The spike in oil prices marked the largest intra-day move since April.
Oil prices have been in focus in the last few months as analysts have predicted it could clear $100 per barrel this year.
A full out war in the Middle East would have dire consequences for oil buyers as the territory accounts for more than 30% of global oil production.
For decades, Israel and Palestine have been in conflict over ownership of land in a territory known as the Gaza Strip.
💡 So what: A spike in oil prices has massive implications for global levels of inflation and economic growth — though it is a mixed bag. Oil importing territories may be forced to raise prices at the pump to offset the rise in oil prices, while oil exporters will benefit from a surge in the price of their main earning commodity.
Tuesday - NFIB Optimism Index
Wednesday - Fed’s September FOMC Meeting Minutes
Friday - No Major Economic News
✈️ Airlines declare Israel “No Fly” zone
🛢️ US, Venezuela talk sanction exemptions
WHY: Sanctions were imposed following Maduro’s 2018 reelection which many Western nations considered a sham.
🏦 World Bank explores options to boost private financing
WHY: The bank is currently pressing for more grants and new capital from member countries even as it leverages its balance sheet to scale up lending for climate change and other global crises.
🏋🏽 Employer coverage for weight loss drugs to double in 2024
WHAT: Calling all calorie crusaders! A recent survey revealed that US employers covering obesity medication could double in 2024. The survey of 502 employers by Accolade, a company that provides healthcare programs for employers, and research company Savanta said 43% of employers were willing to cover GLP-1 drugs next year, compared to the 25% that cover them now.
WHY: Employers that cover weight loss drugs are facing a spike in healthcare costs because of the growing popularity of drugs like Wegovy and Ozempic.
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