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Markets Update: The US election is expected to impact the dollar and bond markets. Chinese blue-chip stocks surge by 2% on hopes of stimulus measures. Implied volatility for USD/CNH remains close to its highest level on record. Australia keeps interest rates unchanged, in line with predictions.
Global Markets Roundup: 5 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Investors in a state of anticipation as they await the outcome of the United States' election, with polls indicating a close race. Meanwhile, there were positive expectations regarding China's potential approval of increased government spending, which led to a rise in Chinese stocks and a sense of unease in the currency and bond markets. Asian-Pacific shares outside Japan, as indicated by MSCI's broadest index, saw a slight increase of 0.3%. Upon returning from a holiday, Tokyo's Nikkei surged by 1.4%. S&P 500 futures, European futures, and FTSE futures remained stable. The markets are concerned about the potential impact of Trump's protectionist trade policies on inflation and exports in the world's largest consumer market. Bond and dollar movements are anticipated to be influenced by the election results. China is considered to be at high risk of tariffs, especially regarding its currency, which is currently experiencing heightened volatility against the dollar (CNHSWO=) at historically high levels.
In the currency markets, The dollar was trading at 152.46 yen USDJPYÂ and $1.0879 per euro EURUSDÂ after a slight easing in response to traders adjusting their positions. Following the expected decision by the central bank to hold rates, the Australian dollar remained relatively stable, with attention turning to the upcoming election. The Aussie AUDUSD was slightly stronger at $0.6601. The yuan USDCNY was at 7.1065 per dollar, while Chinese stock markets surged to nearly one-month highs in anticipation of a meeting of top policymakers in Beijing to discuss local government debt refinancing and spending. Bitcoin BTCUSD remained steady at $67,924 on Tuesday, having decreased from recent highs, as it is considered to benefit from a less strict regulatory environment if Trump wins the election. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, Brent crude futures BRN1! edged lower by 3 cents, or 0.04%, to $75.05 per barrel, whereas U.S. West Texas Intermediate crude CL1! stood at $71.43 per barrel, declining by 4 cents, or 0.06%. Gold maintained its position above $2,730 per ounce on Tuesday, showing little movement, as investors braced for the upcoming US presidential election later in the day. In soft commodities, London March cocoa contract C2! closed 30 pounds lower at 5,405 pounds per metric ton, a decrease of 0.6%. Meanwhile, in New York, the December cocoa contract CC1! dropped by 0.2% to $7,328 per ton. The January robusta coffee contract RC2! ended the session $39 higher, up 0.9%, at $4,318 per ton after hitting a 2-1/2-month low of $4,259 on Friday. The December arabica coffee contract KC1! gained 1.2% to $2.4595 per pound. Raw sugar for March delivery SB1! closed down 0.14 cent, or 0.6%, at 21.93 cents per pound, stepping back from a three-week high of 23 cents reached on Friday. December white sugar SF1! fell 0.4% to $555.50 per ton. The primary wheat contract on the Chicago Board of Trade ZW1! increased by 0.2% to reach $5.69-3/4 per bushel, while CBOT soybeans ZS1! went up by 0.4% to $10.01 per bushel, and corn ZC1! rose by 0.1% to $4.16-3/4 per bushel .BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
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