New York:Global markets began the week with caution as the US midterm elections loomed, influencing asset prices.
According to Philippines News Agency, analysts have indicated that the election results could impact the Trump administration's ability to navigate policy decisions, potentially leading to increased military tensions with Iran. However, there is some optimism in the markets that a US-Iran agreement could be brokered to reopen the Strait of Hormuz, following recent statements from Tehran.
Brent crude oil prices for December delivery dropped 3.2 percent to USD109 a barrel, reflecting the possibility of a deal between the US and Iran. Meanwhile, data revealed that US inflation risks may continue, driven by strong economic activity and rising prices, prompting expectations of further monetary tightening by the Federal Reserve.
The likelihood of the Federal Reserve raising interest rates once more before the year's end stands at over 70 percent, as estimated by money markets. Upcoming nonfarm payrolls data are anticipated to influence these expectations. Additionally, investors are closely monitoring corporate earnings reports, particularly from Apple, to assess the impact of AI and technology investments on profitability.
The yield on the 10-year US Treasury note continued its decline for a third consecutive week amid AI-related concerns, remaining flat at 4.94 percent. The US dollar traded sideways at 101.9, while gold prices plunged 3.6 percent to USD3,870 per ounce due to global monetary policy tightening, later rebounding 0.6 percent to USD3,899 per ounce.
US stock indexes experienced declines on Oct. 30, with the S&P 500 down 1.82 percent, the Nasdaq Composite falling 2.86 percent, and the Dow Jones Industrial Average decreasing by 1.09 percent, although they started the new week positively.
In Europe, civil unrest in France dominated discussions as French student unions urged high school sit-ins in response to unmet education commitments. The European Central Bank is expected to raise rates due to persistent high energy prices. European leaders, including Ursula von der Leyen and Antonio Costa, discussed forming a closer partnership with Canada.
European stock markets showed mixed movements on Oct. 30, starting the new week uncertainly. Asian equity markets were mostly positive, except in Japan, with regional PMI readings indicating a slowdown in economic demand. Japan's Nikkei 225 fell 0.1 percent, while other markets like South Korea's Kospi and China's Shanghai Composite showed gains.
