Today’s News
Stock markets remained steady on Tuesday while the dollar and bonds showed signs of caution as global investors awaited the U.S. presidential election, with polls indicating an intensely close race.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, while Japan’s Nikkei index rose by 1.3% in morning trade as it reopened after a holiday. S&P 500 futures edged up 0.1%.
Image Source: Al Jazeera
In currency markets, the dollar saw modest overnight declines, with traders making last-minute position adjustments. It held at 152.35 yen and USD 1.0875 per euro. “They’ve priced what they think is price-able and that’s that,” said Westpac strategist Imre Speizer, who added that a Trump victory would likely boost the dollar, whereas a Harris win could nudge it lower.
The election, marked by a tense campaign disrupted by security incidents and Biden’s withdrawal in favor of Kamala Harris, has left financial markets on edge. Investors are particularly watchful of how a Trump win could impact inflation through his protectionist trade policies, potentially affecting U.S. exports.
Image Source: Reuters
Image Source: Al Jazeera
Reflecting the heightened uncertainty, implied volatility on the yuan hit record levels against the dollar, given China’s susceptibility to trade tensions. The yuan traded at 7.1065 per dollar, while broader foreign exchange markets remained steady.
Analysts at J.P. Morgan summarized the stakes, suggesting, “Ultimately, the U.S. election comes down to this – a vote for economic continuity and stability with Harris or a shift toward protectionist policies and strongman governance with Trump.”
In Australia, traders awaited a rate decision from the Reserve Bank, expected to leave policy unchanged, while the Australian dollar held at USD 0.6590. Treasury yields inched up, with 10-year yields at 4.30%.
As results begin to emerge after midnight GMT, focus will turn to battleground states including Georgia, Michigan, and Pennsylvania. With a winner potentially undecided for days, Trump has indicated he may contest any loss, repeating a stance from the 2020 election.
Other News
Boeing Workers Vote on Wage Deal to End Strike
Boeing’s West Coast factory workers are voting on a new contract offering a 38% pay raise over four years, potentially ending a seven-week strike. If approved, production of key jets could resume as early as Wednesday.
U.S. Banks Offer Paid Time Off to Encourage Voting
JPMorgan, Bank of America, and Citigroup are reminding U.S. employees of paid time off policies to vote in Tuesday’s presidential election, encouraging civic participation across political divides.
China’s Services Sector Grows as Stimulus Takes Effect
China’s services PMI rose to 52.0 in October, the fastest growth in three months, as Beijing’s stimulus measures improved business conditions. New business and employment increased.
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