5 things to know before the  market opens on Monday 

KEY POINTS

 • The Israeli-Palestinian conflict has intensified after a surprise attack by a Hamas militant group over the weekend. 

 • UAW members voted to strike against another automaker. 

 • The oil industry’s destiny remains shrouded in ambiguity. 

Presenting the key narratives crucial for investors to launch their trading journey:

1. Sentiment Imbalance

Stock futures plunged Monday morning as an all-out war broke out between Israel and Palestine on Saturday. leaving investors feeling uncertain. Rising geopolitical tensions could impact the energy market, causing more volatility in a market where there are already widespread concerns about rising inflation and interest rates. The bond market is closed  Monday for Columbus Day, meaning investors will have to wait another day for an update on interest rates. The uncertainty comes after all three major indexes closed higher last week and a hot jobs report showed employment remained strong. Follow market news in real time.

2. Israel-Hamas War

Israel is recovering from its deadliest attack in half a century after the militant group Hamas launched a surprise offensive early Saturday morning. More than 700 Israelis were killed in what Hamas called the Al-Aqsa flood, and at least 490 Palestinians died in Israeli retaliatory attacks on the Gaza Strip. The total number of deaths exceeded 1,200, including foreigners. During its military operations, Hamas also absorbed an unknown number of Israeli civilians and soldiers. Benjamin Netanyahu, Israel’s Prime Minister, announced a state of conflict within the nation.  Hamas is an Iran-backed, designated terrorist group that has ruled the Gaza Strip since 2007. Gaza, a small swath of land home to more than 2 million Palestinians, is one of the most densely populated areas in the world and is controlled by Israel. A comprehensive embargo spanning land, sky, and sea, in effect since 2007.

3. Another UAW strike

United Autoworkers members of Mack Trucks, a Volvo company, join their colleagues on the strike line. On Sunday, around 3,900 workers rejected the attempted agreement and voted in favor of the strike. They belong to a different part of the union than  UAW members at GM, Ford, and Stellantis, but workers expected raises and benefits similar to those of their union counterparts in Detroit. More than 25,000 workers are currently on strike against automakers in Detroit. Mack Trucks offered a 19% raise, ratification bonuses, increased company 401(k)  payments, and other benefits. Meanwhile, the UAW has decided not to extend strikes to Detroit’s automakers in the first week since targeted strikes began  Sept. 15, saying both sides are making progress.

4. The Future of Oil

Is the age of fossil fuels coming to an end? Could the oil sector be bracing for an upsurge in demand, necessitating massive investment to meet the requirements? The two energy giants have two different answers. OPEC on Monday raised its medium- and long-term forecast for global oil demand, saying the sector needed trillion in investments to meet growth. Based on demand from India, China, other Asian countries, Africa, and the Middle East, the group expects around 6 million barrels per day more than forecast in last year’s report. But the International Energy Agency, the world’s top energy regulator, predicts oil demand will peak before 2030. Its leader described the current situation as “the beginning of the end” of the fossil fuel era. After the Israel-Hamas conflict broke out over the weekend, crude oil prices have risen to over 3 for now.

5. Mexican Alcohol

A lighter touch (beer): Mexican alcohol is more popular than ever in the United States. The United States holds the title as the primary market for premium Mexican spirits and agave-based beers, attributable in part to successful marketing, evolving consumer preferences, and a burgeoning Latino demographic. According to industry analysts, Mexico’s traditional agave-derived libations, tequila, and mezcal, are expected to overtake vodka in 2023 as the country’s most rapidly expanding spirits category in terms of overall volume. In the meantime, earlier this year, Constellation Brands’ Modelo Especial claimed the title of the nation’s top-selling beer, ousting Bud Light from its reign. At present, the sector aspires to replicate this achievement on a global scale.

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