According to the news report by Bloomberg, the US Stock market showed mixed results as investors assessed the outlook for the mid-term elections this week. Additionally, there were also signs that a trade agreement between the US and China still seems a long way off, with no resolution in sight. The price of oil went up for the first time in the last one week.
he Nasdaq Composite Index saw drops thanks to declines in the share prices of the technology giants such as Apple Inc. and other companies. However, a rally in the banking sector as well as the energy sector pushed up the S&P 500.
Treasury yields slipped, however the British pound gained against the dollar for the third day out of four, based on the signs that there was progress being made on the Brexit negotiations. The STOXX Europe 600 Index remained in the green despite rather thin trading today.
For this week, the main concern in global markets will continue to remain politics and central banks. The US election, which is being seen as a popular vote on President Trump’s policies, will take place on Tuesday this week.
Investors are also on the lookout for any updates on trade talks after the economic advisor Larry Kudlow stated last week that a quick resolution between the US and China may not be a possibility.
Later this week on Thursday, the Federal Reserve policy meeting is scheduled to take place, wherein officials are not expected to change the benchmark interest rate, but are expected to give hints about what to look forward to in 2019.
Globally, the price oil went back up as the sanctions on Iran were put back in place on Monday. Asian markets closed mostly down, which also pulled down emerging markets’ shares and currencies. The central bank of Argentina stated that it would be extending the use of a currency trading band into 2019, and would probably be able to manage the fluctuations of the peso less than right now.
Overall, in stocks, the S&P 500 Index went up by 0.3%, the STOXX Europe 600 Index also went up by 0.3% (making it its 6th straight day of gains) and the MSCI Emerging Market Index fell by 0.5%, which is its first drop in a week.
In currencies, the dollar index fell by less than 0.1%, the Euro remained almost unchanged at $1.1394, the Japanese Yen also stayed more or less the same at ¥113.17 to the dollar, the British Pound went up by 0.4% to trade at $1.3022 but the MSCI Emerging Markets Currency Index fell by 0.1%.
In the bonds market, the yield on the 10-year Treasury in the US dropped to 3.19%, Germany’s 10-year Treasury yields remained almost the same at 0.42% and the UK’s 10-year yield went up to 1.5%.
In the commodities markets, the Bloomberg Commodities Index went up by 0.8%, which is the highest jump in the last one week. The West Texas Crude benchmark went up by 1% to trade at $63.76 per barrel. This is the first advance the benchmark has seen in the last one week.
The price of copper went down by 1.5% to trade at $2.7645 per pound. And the price of gold also slipped by 0.1% to trade at $1,231.52 per ounce.
Some of the key events to look forward to this week are:
– The Mid-term US elections on Tuesday
– Reserve Bank of Australia’s November policy decision, also on Tuesday
– Feds are expected to leave interest rates unchanged on their Thursday meeting
– Trump scheduled to meet Vladimir Putin on Armistice Day celebrations on November 11.