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Markets Update: The dollar weakens following Kamala Harris' rise in Iowa, with markets also keeping an eye on developments in China. The NPC meeting and Federal Reserve rate review are expected to serve as catalysts. Additionally, oil prices increase due to the postponement of the OPEC+ output hike.
Global Markets Roundup: 4 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | GOLD | CL1! | ZC1! | ZS1! HG1!
Financial markets kicked off the week with caution, with currency movements taking center stage on Monday as the U.S. presidential race loomed large on the horizon. Trading activity was light in Asia due to Japan's holiday, but the focus was on currency markets where the U.S. dollar saw a significant decline. Analysts suggested that the dollar's drop could be attributed to a reputable poll indicating a surprising 3-point lead for Democratic candidate Kamala Harris in Iowa, particularly due to her strong support among female voters. However, Harris and Republican candidate Donald Trump are neck and neck in the polls leading up to Tuesday's election, and the final outcome may not be determined until days after the voting concludes.
Analysts predict that Trump's positions on immigration, tax cuts, and tariffs may result in higher inflation, bond yields, and the dollar. In contrast, Harris is seen as the candidate who would stay the course. Cash trading of U.S. Treasuries was quiet in Asia because of the Japan holiday, but futures (TYc1) experienced a 10-tick increase.
The MSCI's broadest index of Asia-Pacific shares excluding Japan (.MIAPJ0000PUS), bounced back by 0.6% after hitting a five-week low on Friday. U.S. stock futures recovered from initial losses and traded higher, with Nasdaq futures NQ1! up by 0.42% and S&P 500 futures ES1! increasing by 0.27%. EUROSTOXX 50 futures FESX1! held steady, while FTSE futures Z1! decreased by 0.2%. Investors are closely monitoring the U.S. election and China's NPC standing committee meeting. Chinese stocks started the week on a positive note, with the CSI300 blue-chip index 3399300 climbing by 0.87% and the Shanghai Composite Index 000001 advancing by 0.7%. Hong Kong's Hang Seng Index HSI also recorded a gain of 0.28%.
In currencies, the US dollar decreased by 0.75% against the yen to 151.82 USDJPY, while the euro EURUSDÂ surged by 0.62% to $1.0901. The Australian dollar AUDUSD went up by 0.76%, and China's yuan saw a 0.46% increase in the onshore market USDCNY. The Bank of England is set to convene on Thursday and is expected to lower rates by 25 basis points, although its decision has been complicated by a significant sell-off in gilts following the recent budget announcement by the Labour government, which also caused a decline in the pound. The British pound GBPUSD was recently up by 0.56% at $1.2993, supported by a weaker dollar, after having dropped by 0.3% the previous week. EURUSDÂ | USDJPY | GBPUSD | AUDUSD | NZDUSD
In commodities, oil prices increased by over $1 following OPEC+'s announcement on Sunday of a one-month delay in the scheduled December production increase. Brent futures BRN1! climbed by $1.15 per barrel, or 1.57%, reaching $74.26. U.S. West Texas Intermediate (WTI) crude CL1! also saw a rise of $1.2 per barrel, or 1.73%, reaching $70.69. Spot gold GOLD inched up by 0.12% to $2,738.49 per ounce, although it remained significantly below its recent peak. GOLD | CL1! | ZC1! | ZS1! HG1!
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team