Daily digest market movers: US pushes back Israel

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  • There is no agreement or green light from US President Joe Biden on the question from Israel to attack Iranian oil fields. The Biden administration did not deliver a firm no, but on Friday, President Biden told Bloomberg that he would be thinking about alternatives other than striking oil fields. 
  • Consumer Credit Change for August is due at 19:00 GMT, with expectations to see a drop to $12 billion from $25.45 billion in July. 
  • Four Fed speakers are lined up on Monday:
    • At 17:00 GMT, Federal Reserve Governor Michelle Bowman participates in a fireside chat about banking regulation at the Independent Bankers Association of Texas (IBAT) annual convention in San Antonio, Texas.
    • Near 17:50 GMT, Federal Reserve Bank of Minneapolis President Neel Kashkari participates in a Q&A and moderated discussion at the Bank Holding Company Association's (BHCA) Fall Seminar in Edina, MN.
    • At 22:00 GMT, Federal Reserve Bank of Atlanta President Raphael Bostic moderates a conversation about the business of professional spots as part of the Atlanta Fed's Leading Voice series.
    • Closing off the Monday, near 22:30 GMT, Federal Reserve Bank of St. Louis President Alberto Musalem delivers a speech about the US economy and monetary policy in a Money Marketeers event at New York University.
  • European markets are struggling on Monday, with equity indices dipping lower, while US futures are looking even more sluggish with bigger losses on the day, around 0.50% on average. 
  • The CME Fedwatch Tool shows a 93.1% chance of a 25 basis point (bps) interest rate cut at the next Fed meeting on November 7, while 6.9% is pricing in no rate cut. Chances for a 50 bps rate cut have been fully priced out now. 
  • The US 10-year benchmark rate trades at 3.99%, a 30-day high, and flirting with a break above 4.00%. 

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