US markets finished higher overnight, recovering earlier losses following fresh remarks from Fed officials bolstering confidence the Fed will refrain from lifting rates this year amid rising oil prices and conflict between Israel and Hamas. The Dow finished near best levels, up 197 points (+0.59). Dow at best up 224 points. Dow at worst down 154 points. The S&P 500 is up 0.63%, and the NASDAQ rose 0.39%. US bond markets were closed overnight for Columbus Day. Traditional safe-haven assets were in demand amid conflict. Gold rose 1.58% and the USD Index edged higher, up 0.04%. Among stocks, US energy companies led gains buoyed by higher oil prices, Exxon Mobil up 3.5% and Chevron up 2.8%. Defence stocks also rallied, with the Aerospace & Defence index ending 5.6% higher, its largest one-day gain since November 2020. Conversely, Airlines and travel companies were hit hard, with Carnival, United Airlines, Delta Airlines and American Airlines all down over 4% on travel disruption concerns.

ASX to open higher. SPI Futures up 30 points (+0.43%).

• Russell 2000 up 0.60%.
• November CME FedWatch Tool now at 87.5% probability the Fed will hold rates at the next FOMC meeting up from 72.9% yesterday, and December FOMC meeting at 73.2% probability up from 57.6% yesterday.

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