Overall Market Backdrop, October:
- On October 26th, the European Central Bank (ECB) decided to halt their series of 10 consecutive interest rate hikes, keeping rates steady at 4.0%.
- The Middle East accounts for just under a third of global oil production, so a prolonged conflict in the region could heighten the possibility of a significant disruption to global oil supply.
- Surpassing the 5% mark for the first time since 2007 serves as an indicator of the tightening financial conditions in the U.S. Federal Reserve’s (Fed) interest rate increase cycle.