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Top Stories from Around the World

President Biden Expresses Concern Over Gaza Hospital Explosion

President Joe Biden has expressed his condolences and deep concern over the tragic explosion that occurred at a hospital in Gaza. Speaking from his office, President Biden remarked, “I feel very sorry for the incident and from what I have seen, it is likely the action of a party other than Israel. However, many people are still unsure about who was responsible.” The President also conveyed his anticipation of returning to Israel and the hope for a constructive discussion on the path forward.

OPEC Denies Emergency Meeting Amid Iran’s Call for Oil Embargo

The Organization of the Petroleum Exporting Countries (OPEC) has formally announced its decision to abstain from holding an emergency meeting or taking any action in response to Iran’s call for an oil embargo on Israel. Iran’s proposal also includes the expulsion of Israeli ambassadors from Organization of Islamic Cooperation (OIC) member countries in retaliation for Israel’s actions in the Gaza Strip. OPEC emphasized that it is not a political entity and therefore will not engage in political matters.

Gulf Cooperation Council (GCC) Affirms Commitment to Energy Stability

Jaseem Al-Budaiwi, Secretary-General of the Gulf Cooperation Council (GCC), underscored the commitment of the GCC to maintaining energy stability. He emphasized the region’s role as a reliable partner in international oil exports and asserted that energy resources would not be utilized as a weapon.

Yields on U.S. Treasury Notes Surge to Historic Levels

In a significant development, the yield on the 10-year U.S. Treasury note exceeded 4.9%, marking the first time it has reached this level since 2007. Concurrently, the yield on the 30-year U.S. Treasury note also surged beyond 5%. The 10-year government bond yield currently stands at 4.908%, while the 30-year government bond yield is at 5.006%.

U.S. Home Mortgage Interest Rates Climb to 8%

According to data from Mortgage News Daily, the average U.S. home mortgage interest rate has risen to a remarkable 8%, a level not seen since the year 2000. This surge in interest rates is notably affecting 30-year fixed mortgages, which have now reached the highest level since 2000. This rate increase from 3% in 2021 is attributed to the ongoing adjustment in mortgage interest rates to the 10-year U.S. government bond yield. Moreover, robust economic indicators in the United States are contributing to expectations of an interest rate hike by the Federal Reserve.

Investor Expectations for Federal Reserve (Fed) Meeting

Investors are displaying a strong inclination toward the Federal Reserve (Fed) maintaining interest rates during its upcoming November meeting. More than 90% of investors anticipate this outcome, with additional weight being given to the likelihood of an interest rate increase in December, which will be the last monetary policy meeting of the year. The confidence in these expectations has grown, especially after the United States reported retail sales figures that exceeded forecasts.

CME Group’s latest FedWatch Tool reveals that investors assign a substantial 93.2% weight to the Fed maintaining interest rates at 5.25-5.50% during the October 31 – November 1 meeting. Furthermore, investors now attach a 41.6% weight to the possibility of the Fed raising interest rates by 0.25% to 5.50-5.75% at the meeting scheduled for December 12-13, a significant increase from the 26.3% weight given in the previous week.

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