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Stock Markets On the Increase Ahead Of US Election

Published

Monday, November 4, 2024 at 05:31 PM

Written by Franca Ozini Abaianyanri

Stock Markets On the Increase Ahead Of US Election

Reports coming from interest rate decision and expected Chinese stimulus, on the Global stock market today, shows an increase and the dollar slid as investors firmly position themselves for a coin-toss ahead of the US presidential election.

Oil prices were seen rallying around 2.5 per cent after eight members of the OPEC+ group of producers stated on Sunday that they would extend supply cuts until the end of next month.

They had recently been delaying output hikes on worries about slowing demand in China and the United States.

Reports also show that major European and Asian markets are gained, tracking a positive lead from Wall Street ahead of the weekend.

According to Joshua Mahony, the chief market analyst at Scope Markets, he said that marketers and traders are warming up for the week that looks like the most important of them all in 2024.

“Traders are gearing up for perhaps the most important week of the year” he said.

Investors are currently looking for any means of an advantage between the US presidential candidates as Democratic Vice President Kamala Harris and her Republican rival and counterpart Donald Trump, remain in close competition ahead of Tuesday’s US elections.

The dollar retreated against main rivals Monday as a fresh opinion poll in Iowa, which Trump won in 2016 and 2020, showed Harris leading the game.

A close look at records shows that, victory for Trump is seen as being positive for the dollar to rise and pushing up Treasury yields owing to his pledges to cut taxes and impose hefty tariffs on imports.

Also, elections for the Senate and House of Representatives are also being closely watched amid speculation the Republicans could take control of both.

“If the Republicans sweep all three, that will open the door to significant fiscal changes, which is negative for bondholders and could spell higher yields until the dust settles,” said Peter Esho, founder of Esho Capital.

The election comes before the Federal Reserve is due to make its latest policy decision this week, with investors expecting a 25-basis-point reduction after a bumper 50-point cut at its last gathering, the vote is of particular interest to China, where Beijing is this week meeting to hammer out an economic stimulus.

Nomura’s chief China economist, Ting Lu, said in a research note that : “We believe the US election results will have some impact on the size of Beijing’s stimulus package”.

Both candidates in the election race have pledged to get tougher on Beijing, with Trump promising tariffs of 60 percent on all Chinese goods coming into the country.

Economists expect lawmakers to approve around one trillion yuan ($140 billion) in extra budget, mostly for indebted local governments, and a one-off one trillion yuan payment for banks.

Hong Kong made gains and Shanghai was up more than one percent at the close while Tokyo was closed for a holiday.

Meanwhile, in the eurozone, Paris and Frankfurt were higher in midday deals, with London gaining 0.6 percent, with the Bank of England widely expected to cut its main interest rate on Thursday after inflation moved down below its target rate.

Edited By: Chinedu Eze

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Stock Markets On the Increase Ahead Of US Election

Reports coming from interest rate decision and expected Chinese stimulus, on the Global stock market today, shows an increase and the dollar slid as investors firmly position themselves for a coin-toss ahead of the US presidential election.

Oil prices were seen rallying around 2.5 per cent after eight members of the OPEC+ group of producers stated on Sunday that they would extend supply cuts until the end of next month.

They had recently been delaying output hikes on worries about slowing demand in China and the United States.

Reports also show that major European and Asian markets are gained, tracking a positive lead from Wall Street ahead of the weekend.

According to Joshua Mahony, the chief market analyst at Scope Markets, he said that marketers and traders are warming up for the week that looks like the most important of them all in 2024.

“Traders are gearing up for perhaps the most important week of the year” he said.

Investors are currently looking for any means of an advantage between the US presidential candidates as Democratic Vice President Kamala Harris and her Republican rival and counterpart Donald Trump, remain in close competition ahead of Tuesday’s US elections.

The dollar retreated against main rivals Monday as a fresh opinion poll in Iowa, which Trump won in 2016 and 2020, showed Harris leading the game.

A close look at records shows that, victory for Trump is seen as being positive for the dollar to rise and pushing up Treasury yields owing to his pledges to cut taxes and impose hefty tariffs on imports.

Also, elections for the Senate and House of Representatives are also being closely watched amid speculation the Republicans could take control of both.

“If the Republicans sweep all three, that will open the door to significant fiscal changes, which is negative for bondholders and could spell higher yields until the dust settles,” said Peter Esho, founder of Esho Capital.

Nomura’s chief China economist, Ting Lu, said in a research note that : “We believe the US election results will have some impact on the size of Beijing’s stimulus package”.

Both candidates in the election race have pledged to get tougher on Beijing, with Trump promising tariffs of 60 percent on all Chinese goods coming into the country.

Economists expect lawmakers to approve around one trillion yuan ($140 billion) in extra budget, mostly for indebted local governments, and a one-off one trillion yuan payment for banks.

Hong Kong made gains and Shanghai was up more than one percent at the close while Tokyo was closed for a holiday.

Meanwhile, in the eurozone, Paris and Frankfurt were higher in midday deals, with London gaining 0.6 percent, with the Bank of England widely expected to cut its main interest rate on Thursday after inflation moved down below its target rate.

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