Global Markets Show Volatility Amid Election Uncertainty and Fed Rate Expectations
U.S. markets closed lower on Monday, November 4th, after a volatile session as investors braced for a pivotal week marked by the U.S. presidential election and the Federal Reserve’s policy announcement. The market’s jitters were amplified by a poll suggesting Kamala Harris’ lead in Iowa, adding to the uncertainty surrounding potential election delays. These factors collectively contributed to what market analysts dubbed “Trump trades.”
Adding to the market’s unease, economic data revealed a decline in U.S. factory orders. Orders fell by 0.5% in September, reaching $584.2 billion, following a revised 0.8% decrease in August. This decline further fueled concerns about the health of the U.S. economy.
Across major sectors, most S&P 500 sectors experienced losses, with utilities, communication services, and financials leading the decline. However, energy and real estate stocks bucked the trend, registering gains. The Dow Jones Industrial Average closed 0.61% lower at 41,794.60, the S&P 500 fell 0.28% to 5,712.69, and the Nasdaq Composite declined 0.33% to finish at 18,179.98.
Asia Markets Display Mixed Performance
On Tuesday, Asian markets exhibited mixed performance. Japan’s Nikkei 225 surged by 1.42%, closing at 38,595.50, driven by gains in the Glass, Transportation Equipment, and Banking sectors. However, Australia’s S&P/ASX 200 dipped 0.40% to end the day at 8,131.80, with losses in the Gold, Utilities, and Financial sectors contributing to the decline.
India’s Nifty 50 traded higher by 0.85% at 24,199.05, while the Nifty 500 climbed 0.63% to 22,661.00. Gains in the Metals, Banking, and Oil & Gas sectors propelled these indices upward. China’s Shanghai Composite experienced a significant rally, rising 2.32% to close at 3,386.99, while the Shenzhen CSI 300 gained 2.53% to finish at 4,044.57. Hong Kong’s Hang Seng also saw a positive session, climbing 2.14% and closing at 21,006.97.
European Markets Open with Cautious Optimism
At 05.30 AM ET, the European STOXX 50 index was up 0.05%. Germany’s DAX edged down by 0.01%, while France’s CAC rose 0.04%. The U.K.’s FTSE 100 index traded higher by 0.25%.
Commodity Markets
Crude Oil WTI was trading higher by 0.35% at $71.73/bbl, and Brent was up 0.36% at $75.33/bbl. Oil prices remained within a narrow range as markets awaited the U.S. presidential election, following a 2% rise after OPEC+ delayed a planned December production increase. Natural Gas declined 0.36% to $2.771.
Precious metals also displayed mixed movements. Gold traded higher by 0.10% at $2,748.80, Silver gained 0.48% to $32.767, and Copper rose 0.85% to $4.4688.
U.S. Futures Point to a Positive Open
At 05.30 AM ET, Dow futures were up 0.13%, S&P 500 futures gained 0.17%, and Nasdaq 100 Futures rose 0.27%.
Forex Markets
The U.S. dollar index fell 0.12% to 103.77, the USD/JPY was up 0.05% to 152.20, and the USD/AUD declined 0.49% to 1.5110. The dollar softened as election volatility surged while traders awaited the Fed’s rate decision.
