Iran Vows Strong Response to US Military Threats as Canada’s CPI Rebound Fuels Rate Hike Expectations
FastBull FeaturedSummary:
Iran has vowed a forceful response if the United States launches another military operation, while Canada’s inflation rate rose to 3.1% in September, driven primarily by higher energy prices.
Headlines
1. Israeli Prime Minister Orders Efforts to Overthrow Iran’s Government
2. Trump’s Approval Rating Falls to a Record Low of 31%
3. Iran Vows Strong Response if the US Launches Another Military Operation
4. US CPI Data Show That More Work Is Needed to Address Inflation
5. French Unrest Heightens Fiscal Concerns, Pushing Up French Government Bond Yields
6. US Homebuilder Confidence Falls to a 14-Year Low as Sales Remain Weak
7. Canada’s Inflation Rate Rises to 3.1% in September, Driven Primarily by Energy Prices
Detailed
Israeli Prime Minister Orders Efforts to Overthrow Iran’s Government
On the evening of October 19 local time, Israeli Prime Minister Benjamin Netanyahu said in an interview with Israel’s Channel 14 that he had instructed the Israel Defense Forces (IDF), the Mossad, and the IDF’s Military Intelligence Directorate to work toward overthrowing Iran’s government. Referring to US President Donald Trump’s previous public support for him, Netanyahu said Trump’s position was clear: the central task was to eliminate the existential threat Iran poses to Israel once and for all.
Trump’s Approval Rating Falls to a Record Low of 31%
According to a Reuters/Ipsos poll, US President Donald Trump’s approval rating has fallen to its lowest level on record, as Americans worry about high gasoline prices and appear poised to punish his Republican Party in the November 3 congressional elections. The poll found that 31% of Americans approved of Trump’s performance in office, down one percentage point from two weeks earlier. This marks the lowest approval rating of his two presidential terms.
Iran Vows Strong Response if the US Launches Another Military Operation
Hossein Mohebbi, a spokesperson for Iran’s Islamic Revolutionary Guard Corps (IRGC), said in an exclusive interview with Tehran Times that Iran had not yet deployed its full capabilities to completely blockade the Strait of Hormuz. He warned that if the United States launches another military operation, even a limited strike, Iran will respond more forcefully. He added that further US action could trigger a severe global energy crisis.
Mohebbi also said Iran had not yet linked developments in the Strait of Hormuz, the Bab el-Mandeb Strait, and the Suez Canal, nor had it fully mobilized the region’s capabilities or those of the resistance front.
US CPI Data Show That More Work Is Needed to Address Inflation
Kevin Hassett, director of the White House National Economic Council, said on Monday that prices for some goods, including beef and eggs, had declined. However, September’s Consumer Price Index (CPI) data indicated that overall inflation still required policy attention.
Hassett said inflation had appeared to be fully under control over the previous three months, but now seemed to be picking up again, potentially requiring some intervention. He said the latest increase could either be a temporary rebound within a broader downward trend or merely a short-lived fluctuation.
Hassett also said he respected the independence of the central bank and that Kevin Warsh would do what he believed was right. He added that consumers remained very optimistic about the economy and were increasing their spending. That, he noted, was precisely the kind of development the Federal Reserve needed to monitor.
French Unrest Heightens Fiscal Concerns, Pushing Up French Government Bond Yields
French government bond yields rose on Monday, widening the yield spread over German government bonds. France is grappling with both sluggish economic growth and mounting debt, while the weekend saw some of the most serious unrest in recent years.
LSEG data showed that the yield on French two-year government bonds rose by as much as 10 basis points during the session. Concerns over France’s borrowing needs had previously pushed the 10-year government bond yield to 4.99% in early October, although market volatility eased somewhat last week.
Jim Reid, Deutsche Bank’s head of global macro research, said the unrest would make international investors less comfortable buying French government bonds. The modest narrowing in French bond spreads over roughly the past week would face a test on Monday, he added.
France was already facing a challenging fiscal environment, and with elections approaching, the weekend’s events had added another layer of political risk for markets.
US Homebuilder Confidence Falls to a 14-Year Low as Sales Remain Weak
Data released by the National Association of Home Builders (NAHB) and Wells Fargo showed that the housing market index fell three points to 29, its lowest level since June 2012.
A reading below 50 indicates that more homebuilders view market conditions as poor than as favorable. The index has remained below that threshold for more than two years.
The index measuring current sales conditions fell to 33, also its lowest level in 14 years. The measure of sales expectations for the coming six months dropped to its lowest level since November 2022, while the index tracking prospective buyer traffic fell to its lowest level since the outbreak of the COVID-19 pandemic.
Canada’s Inflation Rate Rises to 3.1% in September, Driven Primarily by Energy Prices
Canada’s CPI rose 3.1% year over year in September and increased 0.1% month over month. The acceleration in inflation was driven primarily by energy prices, which climbed approximately 19% year over year, compared with around 15% in August. Gasoline prices rose about 28% from a year earlier.
Among other components, grocery price inflation eased, with prices rising approximately 1.7% year over year in September, the smallest annual increase since May 2024. Shelter costs rose around 1.8% year over year, compared with approximately 1.5% in August. Rent increased about 2.8%, while air transportation prices climbed approximately 19%.
Among the Bank of Canada’s preferred underlying inflation measures, median CPI eased to around 1.9%, while trimmed-mean CPI stood at approximately 1.8%.
This was the final inflation report available before the Bank of Canada’s policy meeting later this month. The governor had previously said that the bank’s new projections would show higher inflation, but there was not yet evidence that price pressures had spread to other goods.
Markets expect the Bank of Canada to leave its policy rate unchanged at 2.25% on October 28, while pricing in the possibility of a 25-basis-point rate hike in December.
Going forward, attention will focus on whether higher energy costs feed through into core inflation and how the Bank of Canada balances rising price pressures against slowing economic growth.
Today’s Economic Calendar
12:15 (UTC+8) Speech by European Central Bank Chief Economist Philip Lane
14:00 (UTC+8) Germany’s September Producer Price Index (PPI), month over month
14:00 (UTC+8) UK ILO unemployment rate for the three months to August
17:00 (UTC+8) Eurozone ZEW Economic Sentiment Index for October
20:30 (UTC+8) US housing starts, annualized, for September
22:00 (UTC+8) US pending home sales index, month over month, for September
01:00 (UTC+8) Speech by Bank of England Monetary Policy Committee member Megan Greene
Copyright © 2026 FastBull Ltd
News, historical chart data, and fundamental company data are provided by FastBull Ltd.
Risk Warnings and Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
