Futures higher; CPI, ECB decision ahead; Adobe to report - what’s moving markets

Economic

Summary:

U.S. futures edge higher before CPI data; Fed policy outlook in focus. ECB expected to hold rates. Oracle’s surge lifts markets. Adobe earnings awaited. Oil and gold ease on demand concerns, inflation watch.

U.S. stock futures rise ahead of the publication of hotly-anticipated inflation figures, which may factor into a major upcoming Federal Reserve monetary policy decision. Meanwhile, the European Central Bank is tipped to leave interest rates unchanged when it unveils its own policy announcment on Thursday. On the earnings front, Photoshop-maker Adobe (NASDAQ:ADBE) will be in focus when it reports after the bell.

Futures higher

U.S. stock futures pointed higher on Thursday as investors geared up for the release of key consumer price data that could impact the trajectory of Federal Reserve interest rate policy.

By 03:10 ET (07:10 GMT), the Dow futures contract had risen by 35 points, or 0.1%, S&P 500 futures had climbed by 8 points, or 0.1%, and Nasdaq 100 futures had ticked up by 39 points, or 0.2%.

The main averages on Wall Street ended in mixed fashion on Wednesday, with traders gauging a blowout earnings report from artificial intelligence-enhanced cloud software group Oracle and an unexpected fall in producer prices in August which bolstered bets for an imminent Fed rate cut.

Both the benchmark S&P 500 and tech-heavy Nasdaq Composite indices closed at all-time peaks, powered in large part by a surge in Oracle’s shares. The stock spiked by 36% -- its largest one-day gain since 1992 and giving it a market capitalization not far from the $1 trillion mark. The blue-chip Dow Jones Industrial Average, meanwhile, dropped by 0.48%.

CPI ahead

Attention is turning to the consumer price index for August, a crucial gauge of inflationary pressures.

The data from the Labor Department’s Bureau of Labor Statistics is anticipated to show that prices grew at an annualized rate of 2.9% in August, accelerating slightly from 2.7% in July.

At that level, the Fed would likely be facing simultaneous threats to both sides of its dual mandate -- maximizing employment and maintaining price stability, defined as a long-run inflation rate of 2%.

This would leave policymakers with the knotty task of simultaneously addressing a cooling labor market and sticky prices, an economic situation that could threaten to edge into a period of "stagflation" marked by high inflation, tepid growth and elevated unemployment.

However, a separate report on Wednesday showed a surprise decline in U.S. factory-gate prices in August. Analysts highlighted that prices in tariff-exposed categories in particular were relatively muted.

So far, Fed officials, including Chair Jerome Powell, have indicated that they are likely to prioritize the labor market’s easing over inflation. A rate cut could in theory spur more investment and hiring, albeit at the risk of fueling price growth.

ECB decision

Prior to the Fed’s decision at its September 16-17 gathering, the European Central Bank is scheduled to unveil its own rate announcement on Thursday.

The ECB is widely anticipated to leave borrowing costs unchanged. However, analysts at ING noted that the debate between supporters of keeping rates steady and those in favor of a cut "will likely be more heated than markets have priced in."

Perceived hawkish commentary from ECB President Christine Lagarde in July has weighed on expectations for impending rate moves, with the central bank eyeing slightly higher-than-anticipated inflationary pressures since its last gathering and faster-than-expected economic growth.

These developments, along with ongoing uncertainty over U.S. tariffs, have fueled bets that the ECB will provide little clear guidance around its own policy trajectory -- and will back keeping its key deposit rate unaltered at 2% for a second straight meeting.

Adobe to report

Headlining the earnings calendar will be software tools provider Adobe, who will report its quarterly returns after the closing bell.

Sentiment around the firm behind the Photoshop image editor and Acrobat Pro file manager is negative, with many investors flagging that Adobe faces "significant cyclical and secular headwinds," analysts at Vital Knowledge said in a note.

The company is seen posting fiscal third-quarter earnings per share of $5.18 on sales of $5.91 billion, Bloomberg consensus estimates showed.

In June, San Jose-based Adobe raised its annual financial guidance, but observers fretted over when the business could begin to see results from its adoption of AI.

Oil inches down

Oil prices slipped lower on weak demand in the United States, after logging strong gains this week on heightened geopolitical tensions in Russia and the Middle East.

At 03:36 ET, Brent futures dropped 0.1% to $67.40 a barrel, and U.S. West Texas Intermediate crude futures fell 0.2% to $63.56 a barrel.

U.S. crude inventories rose by 3.9 million barrels in the week to September 5, the Energy Information Administration said late Wednesday, against expectations of a draw of 1 million barrels.

Gasoline stocks also rose, adding 1.5 million barrels, against expectations of a draw of 200,000 barrels.

Evidence of a slowing U.S. economy will raise concerns that demand in the largest energy consumer in the world is set to slow as the year progresses.

Elsewhere, gold prices edged down amid investor caution prior to the U.S. consumer price report, but the yellow metal stayed close to record highs on firm expectations that the Fed will cut interest rates next week.

Bullion is particularly sensitive to borrowing costs, as lower rates reduce the opportunity cost of holding the non-yielding asset.

Source: investing

To stay updated on all economic events of today, please check out our Economic calendar

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.

Add to Favorites

Michelle

Economic

Cryptocurrency

U.S. inflation for August came in hotter than expected, though likely not enough to derail the Federal Reserve from cutting interest rates next week.

The Consumer Price Index (CPI) rose 0.4% last month versus expectations for 0.3% and 0.2% in July. On a year-over-year basis, CPI was higher by 2.9% versus a forecast 2.9% and 2.7% in July.

Core CPI, which excludes the volatile food and energy components, climbed 0.3% in August against forecasts for 0.3% and July's 0.3%. Year-over-year core CPI rose 3.1% compared with the 3.1% forecast and July’s 3.1%.

Bitcoin slipped about 0.5% from $114,300 to $113,700 in the immediate aftermath of the data.

Prior to the CPI data, markets were pricing in a 92% chance of a 25 basis point cut at the upcoming Fed meeting and an 8% chance of a 50 basis point cut, according to CME FedWatch. The report likely puts to rest any idea of a 50 basis point move, which had gained steam following last Friday's soft jobs report and Wednesday's weak PPI numbers.

Source: CoinDesk

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Glendon

Economic

Forex

The European Central Bank held interest rates steady on Thursday as economic uncertainty persists in the wake of U.S. Donald Trump's aggressive tariff agenda.

Ahead of the decision, markets had been pricing in an around 99% chance of the ECB's key deposit facility rate being left at 2% for the second consecutive time. The central bank last cut rates in June, bringing rates further down from last year's record high of 4%.

The ECB is grappling with global economic uncertainty, despite inflation in the euro zone hovering around the central bank's 2% target in recent months, and the EU striking a trade agreement with the U.S.

The transatlantic partners agreed to 15% blanket tariffs on EU exports to the U.S. in July, with further details about the framework emerging last month. It addressed some questions for key European sectors like pharmaceuticals.

However, questions remain as some issues — such as provisions for the wine and spirits sector — were left open. Concerns over further tariffs have also grown following Trump's threat of retaliations against the EU after it hit Alphabet's Google with a $3.45 billion antitrust fine.

Fears about the impact tariffs could have on economic growth remain. Growth in the euro zone has remained sluggish even as rates have come down, with the latest figures showing just 0.1% growth in the second quarter after a 0.6% expansion in the previous period.

While the interest rate decision itself was widely anticipated, Deutsche Bank economists last week noted that "the focus will be on the signals for the path that lies ahead for monetary policy."

Markets on Thursday are therefore expected to focus on ECB President Christine Lagarde's press conference and the latest projections for inflation and economic growth. The central bank last updated its economic forecasts in June.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Adam

Stocks

Asia Market Wrap - Tech Shares Lead the Way, SoftBank Up 9%

Major benchmarks for Japan, South Korea, and mainland China increased, while those for Australia and Hong Kong decreased. MSCI’s Asia-Pacific index was unchanged following five straight days of increases.

Japan's Nikkei .N225 gained 1.2% to hit a record as tech, energy and utilities firms jumped. South Korean shares .KS11 rose 0.6%.

Asian technology stocks had a strong day, thanks to a huge surge in Oracle's stock. This boosted stock markets in Japan, Taiwan, and South Korea to new record highs, even though the session was expected to be quiet ahead of key U.S. inflation data.

Japan's tech investor, SoftBank, saw its shares jump by 9% after its partner, Oracle, experienced its biggest one-day gain since 1992, soaring 36%. This brought the 48-year-old company close to a market value of $1 trillion.

Oracle's success was due to its positive outlook on how artificial intelligence will increase demand for its cloud services. This caused a domino effect, leading to gains for almost all AI-related stocks in Asia, with the Nikkei index rising 1.2%, Taiwan's market up 1%, and Chinese blue-chip stocks gaining 1.8%.

Markets Today:Tech Shares Lead the Way, Softbank Up 9%, Gold Retreats, FTSE 100 Eyes Range Break. ECB, US CPI Ahead_1

European Open - Euro Shares Trickle Higher

European stocks went up slightly as investors were being careful while they waited for two major announcements: the European Central Bank's decision on monetary policy and an important inflation report from the United States, both due later in the day.

The overall European STOXX 600 index rose by 0.1% to 553.03 points. The personal and household goods sector led the gains, increasing by 0.5%.

This sector was helped by a 1.5% rise in the share price of Kering, the company that owns Gucci. Kering announced that it will delay the full purchase of the Italian fashion brand Valentino until at least 2028. This decision pushed back an expensive deal that had been a burden on the heavily indebted company.

On the FX front, The U.S. dollar index went up slightly by 0.1%, marking its third straight day of increases. The euro also saw a small gain, rising 0.04% to $1.1699.

The dollar was flat against the Japanese yen, trading at 147.43 yen, following new data that showed Japanese wholesale prices rose 2.7% in the year up to August. This increase, which was faster than the previous month, suggests that inflation is becoming a persistent problem in Japan.

The Australian dollar slipped 0.1% to 0.66095, pulling back from the highest levels it had reached since November on Wednesday. This happened as the prices of commodities like crude oil and gold gave up their recent gains.

The offshore Chinese yuan strengthened slightly by 0.03%, trading at 7.1184 per dollar in early Asian trade. The New Zealand dollar slipped 0.1% to 0.5936.

The British pound was unchanged for the day, trading at 1.3525.

Currency Power Balance

il prices dropped a bit due to concerns about a weaker demand for oil in the US and the risk of too much oil being available on the market. However, the price decrease was not significant because of ongoing worries about attacks in the Middle East and the war in Ukraine.

Brent crude futures went down by 11 cents, or 0.16%, to $67.38 per barrel. Meanwhile, US West Texas Intermediate crude futures fell by 13 cents, or 0.2%, to $63.54 per barrel.

Gold prices went down slightly but remained close to their all-time highs. This happened as investors were waiting for new U.S. consumer inflation data, which is set to be released later in the day. This comes after recent producer price figures were weaker than expected, which has increased the belief that the Federal Reserve will cut interest rates next week.

Spot gold was down 0.2%, trading at $3,632.48 per ounce. The price had reached a record high of $3,673.95 on Tuesday.

Economic Data Releases and Final Thoughts

Looking at the economic calendar, the European session will be busy as markets focus on the ECB rate decision due out today.

Investors might not be fully considering the disagreements that some members of the European Central Bank (ECB) have with the idea that the economy is in a "good place," a view that has been promoted by President Christine Lagarde and other more aggressive members. However, recent public statements and a higher-than-expected core inflation rate now suggest that the ECB has probably finished its period of cutting interest rates.

Attention will then turn to the US CPI release. August's Consumer Price Index (CPI) data is being released today, and we expect a core inflation rate of 0.3% for the month, which aligns with what most people are predicting.

This comes after yesterday's news that U.S. Producer Price Index (PPI) data was surprisingly weak, falling by 0.1% for both the main and core measures. July's numbers were also adjusted lower. A big reason for this was a significant drop in "trade services," which acts as a measure for company profits. This suggests that, for now, companies are absorbing higher costs from tariffs instead of passing them on to customers.

This could be because companies are either worried about future consumer demand or they are trying to avoid a negative reaction from the public or politicians by not raising prices. In any case, it gives us more confidence that the new CPI data won't be higher than 0.3%. This would likely support the belief that the Federal Reserve will make three small interest rate cuts (25 basis points each) by the end of the year. Unless today's inflation numbers are much lower than expected, there won't be much talk about a larger 50-basis-point rate cut next week.

Chart of the Day - FTSE Index

From a technical standpoint, the FTSE is eyeing a range break having been stuck in consolidation for the entire week.

The 100-day MA still holding firm as support with a candle close above the red square on the chart likely leading to further upside.

The FTSE did attempt a break yesterday morning but bulls failed to hold onto gains and close above the range.

Looking at resistance ahead, yesterday's high at 9296 will be key before the 9309 and 9358 come into focus.

Support is provided by the 100-day MA at 9233 before the 200-day MA at 9186 comes into focus.

FTSE 100 Four-Hour Chart, September 3. 2025

Source: marketpulse

Risk Warnings and Disclaimers

Add to Favorites

Samantha Luan

Economic

Commodity

Forex

Stocks

Key points:

● Final orders over $16.85 billion for five, 10-year tranches

● Reuters reported sukuk could raise $3 billion-$4 billion

● Deal starts a day after Israeli attack on neighbouring Qatar

● Gulf debt sales have surged in recent weeks

Saudi Aramco, the world's biggest oil company, raised $3 billion from a sale of Islamic bonds, a term sheet showed on Thursday, as investors appeared unperturbed by an Israeliattackon neighbouring Qatar this week.Aramco priced $1.5 billion in five-year Islamic bonds, or sukuk, at a profit rate of 4.125% and $1.5 billion in 10-year sukuk at a profit rate of 4.625%, the term sheet seen by Reuters showed.Solid demand helped Aramco tighten both tranches' spreads to U.S. Treasuries by 35 basis points from initial price guidance, the term sheet showed, signalling investors shrugged off Tuesday's attack on Qatar.

Final order books for both tranches topped $16.85 billion, a separate bank document seen by Reuters showed. Demand had peaked at over $20 billion, according to fixed income news service IFR."I don't see much reaction (from the attack on Qatar)," a Saudi-based investment banker said as the sale kicked off, requesting not to be named.Saudi Aramco did not immediately respond to a request for comment from Reuters on the transaction.Aramco's debt sale follows a surge in bond issuance from the Gulf region this month, including Saudi Arabia's $5.5 billion sukuk sale, driven by strong investor demand and heavy inflows into bond funds.

But it was also a test of investor appetite for regional deals a day after Israel attempted to kill the political leaders of Hamas with airstrikes on Qatar, escalating its military action in the Middle East.Reuters reported last week that Aramco, in which the Saudi government is the majority shareholder, could raise between $2 billion and $4 billion from the sukuk sale amid weaker oil prices. The debt will be used for general corporate purposes, the term sheet said.Al Rajhi Capital Company, Citi, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JPMorgan, KFH Capital, and Standard Chartered Bank are mandated active bookrunners on the transaction.

Aramco has been seeking other avenues to raise funds. Last month, it signed an $11 billion lease and leaseback agreement involving its Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners (GIP), part of BlackRock. The consortium is in talks to raise around $10 billion in debt to back the deal, Reuters reported on Wednesday.

Source: TradingView

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Adam

Economic

MARKET WRAPS

Stocks:

European stocks built on Wednesday's session, ticking higher Thursday ahead of the region's central bank decision on interest rates.

The European Central Bank was expected to remain tight lipped as further inflation data was also expected later today from the U.S.

"The ECB is highly likely to hold and offer little steer over the policy outlook, repeating the 'deliberately uninformative' approach from July," Citi said.

The bank added that the effect of U.S. consumer price index data on the Federal Reserve was arguably more important, and that the ECB was unlikely to change tack unless forced.

"We think the ECB is on hold now for the foreseeable future and its policy rate will remain at 2%," RBC Capital Markets said.

Meanwhile, Europe's oil stocks posted gains despite a slight decline in the price of crude oil.

Stocks to Watch

BP led the risers while Shell, TotalEnergies, Repsol and Eni managed more modest gains.

It comes as Brent rallied Wednesday on heightened geopolitical tensions after Russian drones entered Poland.

Market Insight

Fintech deal activity in the year to the end of June stayed high, according to a new report compiled by law firm White & Case, and M&A activity was expected to accelerate as companies opt for inorganic growth amid fragile fundraising markets.

"What has been lost in fundraising appetite has been more than compensated for in consolidation activity. Those fintechs which embrace the drive for profitability will pull through to exit."

Since the second-half of 2024, acquisitions have grown by 50% compared with the previous 12 months, while strategic partnerships doubled.

U.S. Markets

Stock futures pointed to a higher open Thursday as investors waited to scrutinize CPI inflation data. Wednesday's producer price index for the month of August showed an unexpected slowdown in wholesale inflation.

Forex:

The dollar rose modestly against a basket of currencies, and was flat against the euro, ahead of data expected to show U.S. inflation accelerated last month.

There was a risk that inflation would be higher than expected and that the Fed would implement a smaller cut to rates next week than anticipated, Commerzbank said.

U.S. inflation data was likely to have a stronger influence on the euro-dollar exchange rate than the ECB's decision on interest rates, TD Securities said.

"U.S. CPI will be a bigger driver of foreign exchange, where we are cautious of dollar strength on a stronger report and signs of inflation passthrough."

Bonds:

Eurozone government bond yields were little changed as investors waited on the ECB's interest-rate decision and U.S. CPI inflation data.

That said, ING considered that the two-year Schatz yield has room to fall given current geopolitical risks.

Treasury yields traded higher, ahead of consumer price inflation data.

"Last month's U.S. CPI figures stand as the calendar highlight, though again seem unlikely to move the needle either in terms of what the Federal Reserve will do next week, or beyond that," Pepperstone said.

The 10-year Treasury yield rose slightly but was anticipated to move toward, and likely fall past, the 4% level, according to ING. It maintained the view that the neutral yield level was in the 4.24%-4.50% area.

"The current inflation environment...suggests we should or could trend back up there."

Yields on U.K. government bonds , were little changed, tracking moves in their eurozone counterparts.

Metals:

Gold prices slipped but remained above $3,600 a troy ounce as safe-haven demand continued, driven by geopolitical tensions and economic uncertainty, ANZ said.

Copper prices stayed elevated and hovered just above $10,000 a metric ton in London due to concerns related to Freeport's Grasberg mine closure in Indonesia coupled with the prospect of stronger Chinese demand.

"A prolonged disruption could tighten the market further," ANZ said separately.

Energy:

Oil prices ticked downward but were steady after a three-day rally triggered by geopolitical tensions in Europe and the Middle East.

Crude is caught between concerns regarding oil supply and a rise in U.S. inventories, according to MUFG and Swissquote Bank .

EMEA HEADLINES

The ECB and the Fed Are Trading Playbooks. What It Means for Markets.

The European Central Bank has been much more aggressive than the Federal Reserve in cutting interest rates this year. That's about to change.

The ECB kept borrowing costs steady at its last meeting in July, having lowered interest rates four times already in 2025. Traders are pricing in a 99.7% chance that it will hold again on Thursday, according to data from LSEG.

Israel Is Straining Its Hard-Won Ties in the Gulf

Israel's airstrike on Hamas leaders in Qatar has piled fresh strain on its relations with Persian Gulf states, countries that just a few years ago were the cornerstone of its hopes to secure its future by winning diplomatic acceptance in the Middle East.

The attack in a quiet embassy district of Doha, which killed several Hamas officials and a member of the Qatari security forces, punctuated an already growing realization that Israel has made a strategic decision to secure itself through force of arms even at the expense of its diplomatic ties.

Oil Giant Saudi Arabia Is Emerging as a Solar Power

The world's ultimate petrostate is turning to solar power.

Saudi Arabia is building some of the world's biggest solar farms, along with giant arrays of batteries to store their electricity till after dark. The rapid rollout is making the country into one of the fastest-growing markets for solar power from a near-standing start.

'Block Everything' Protest Rocks France: What to Know

Thousands of people staged demonstrations across France on Wednesday, disrupting traffic and public transportation for a day of nationwide action under the banner "Block Everything." Authorities responded by deploying 80,000 police, who detained more than 300 protesters. Demonstrations were mostly peaceful, but some protesters clashed with police in Paris and Rennes, a city in western France, where a bus was set on fire.

GLOBAL NEWS

Oracle Surge Lifts S&P 500 to New Record

A breakneck rally in Oracle shares helped power the S&P 500 to another record, while a slide in Apple dragged down the Dow Jones Industrial Average.

Shares of Oracle soared 36% on Wednesday, their best one-day percentage gain since 1992, after the database-software giant said that it won several billion-dollar artificial intelligence deals in its latest quarter. The Wall Street Journal reported Wednesday afternoon that OpenAI and Oracle signed a $300 billion computing deal, among the biggest cloud contracts ever signed.

August CPI will be the most crucial data for stock-market investors this week. Here's what to watch

Investors are looking ahead to an August consumer-price index report on Thursday that has the potential to curb the Federal Reserve's enthusiasm for interest-rate cuts beyond September.

A 100% likelihood is currently being attached to a Fed rate cut next Wednesday, particularly after an unexpected decline in producer prices for August and a deterioration in U.S. job growth. The only questions now are how big this rate cut will be and what officials will have to say about more reductions this year if tomorrow's CPI report comes in hotter than expected. Meanwhile, businesses are absorbing part of the tariff costs associated with the Trump administration's trade policies, taking some of the bite out of inflation.

Wholesale Inflation Proved More Muted in August

Wholesale inflation unexpectedly slowed in August, as higher tariffs are proving slow to work their way through the pipeline. But while the volatility of producer prices may raise some eyebrows, the latest data don't forestall the Federal Reserve from lowering interest rates next week.

The producer price index for total final demand edged down 0.1% in August, putting the annual rate at 2.6%, the Bureau of Labor Statistics reported Wednesday morning.

The Bizarre Sprint Ahead of Next Week's Fed Meeting

President Trump's unprecedented bid to wrest greater control of the Federal Reserve barreled toward a suspense-filled conclusion Wednesday amid two parallel efforts to decide who will be able to participate at next week's interest-rate meeting.

Late Tuesday, a federal judge granted Fed governor Lisa Cook an injunction that temporarily halted Trump's attempt to remove her. The decision was a crucial legal victory for Cook-and the central bank's independence more broadly-because it allows her to remain in her job, at least for now. It clears the path for her to vote at a consequential Fed meeting next week, when officials are expected to make their first interest-rate cut of the year.

How the Shooting of Conservative Activist Charlie Kirk Unfolded

OREM, Utah-Charlie Kirk was among friends and in his element.

On Wednesday afternoon, the political activist and author who vaulted to the heights of the MAGA world by mobilizing a new generation of young conservatives on college campuses was on stage at Utah Valley University, and squarely in Trump country.

Trump Has Heated Call With Netanyahu Over Israeli Strike on Qatar

WASHINGTON-President Trump held a heated call with Israeli Prime Minister Benjamin Netanyahu on Tuesday, senior U.S. administration officials said, conveying deep frustration at being blindsided by Israel's strike on Hamas representatives in Qatar.

Trump told Netanyahu that the decision to target Hamas political leaders in Doha, Qatar's capital, wasn't wise. He was angry to learn about the attack as it was occurring from the U.S. military-rather than from Israel-and that it struck the territory of another U.S. ally that was mediating negotiations on ending the Gaza war, the officials said.

Source: morningstar

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Michelle

Political

Palestinians in the relatively unscathed Nasser area of Gaza City were having to decide whether to stay or go on Thursday after the Israeli military dropped leaflets warning that troops would take control of the western neighbourhood.

Israel has ordered the hundreds of thousands of people living in Gaza City to leave as it intensifies its all-outwaron the Palestinian militant group Hamas, but with little safety, space and food in the rest of Gaza, people face dire choices.

"It has been almost two years, with no rest, no settling down, not even sleep," said Abu Ahmed, a father, as he and his family prepared to flee the city in a truck pulled by a motorcycle, laden with some of their belongings.

"We can't sit with our children just to sit with them. Our life revolves around war," he said. "We have to go from this area to that area. We can't take it anymore, we are tired."

FATAL SEARCH FOR FOOD

Israeli forces killed 18 people across the territory on Thursday, according to medics and local health authorities, including 11 in strikes on various parts of Gaza City, five in a strike on a single location in Beach refugee camp, and two who were searching for food near Rafah in the south.

Israeli ground troops had operated in parts of the Nasser area at the start of the war in October 2023, and the leaflets dropped late on Wednesday left residents fearful that tanks would soon advance to occupy the entire neighborhood.

In the past week, Israeli forces have been operating in three Gaza City neighborhoods further east - Shejaia, Zeitoun, and Tuffah - and sent tanks briefly into Sheikh Radwan, which is adjacent to Nasser. It said last Thursday it controlled 40% of the city.

On Wednesday, the Israeli military said it struck 360 targets in Gaza in what it said was an escalation of strikes that targeted "terrorist infrastructure, cameras, reconnaissance operations rooms, sniper positions, anti-tank missile launch sites, and command and control complexes".

It added that in the coming days, it would intensify attacks in a focused manner to strike Hamas infrastructure, "disrupting its operational readiness, and reducing the threat to our forces in preparation for the next phases of the operation".

Gaza City families continued to stream out of their homes in areas targeted by Israeli aerial and ground operations, heading either westward towards the centre of the city and along the coast, or south towards other parts of the strip.

But some were either unwilling or unable to leave.

"We don't have enough money, enough to flee. We don't have any means to go south like they say," said Ahmed Al-Dayeh, who was attending the funeral of one of the people killed in Thursday's strikes, who was his friend.

The war was triggered by Hamas-led attacks launched from Gaza on southern Israel on October 7, 2023, in which 1,200 people, mostly civilians, were killed, and 251 taken hostage, according to Israel.

Israel's military assault on Gaza has killed over 64,000 people, also mostly civilians, according to local health authorities, caused a hunger crisis and wider humanitarian disaster, and reduced much of the enclave to rubble.

Seven more Palestinians, including a child, have died of malnutrition and starvation in Gaza in the past 24 hours, the territory's health ministry said on Thursday, raising the number deaths from such causes to at least 411, including 142 children.

Israel says it is taking steps to prevent food shortages in Gaza, letting hundreds of trucks of supplies into the enclave though international agencies say far more is needed.

The status of negotiations towards a ceasefire in Gaza that were being hosted and co-mediated by Qatar has been uncertain since Israel attempted to kill the political leaders of Hamas in an airstrike on the Qatari capital Doha on Tuesday.

The airstrike took place shortly after Hamas claimed responsibility for a shooting on Monday that killed six people at a bus stop on the outskirts of Jerusalem.