Global stock markets were mixed on Tuesday as investors prepared for a week filled with crucial events, including the U.S. presidential election and a Federal Reserve meeting.
Uncertainty over the election results, which could take days to finalize, added to market jitters, while hopes of a Fed rate cut provided a counterbalance.
Major Asian indexes posted strong gains, fueled by optimism that China will implement stimulus measures to support its slowing economy. China’s Shanghai Composite jumped 2.3 percent and Hong Kong’s Hang Seng 2.1 percent, as investors anticipated Beijing’s stimulus policies, including a possible restructuring of local government debt.
Japan’s Nikkei 225 rose 1.1 percent after reopening after the holiday, while South Korea’s Kospi fell 0.4 percent amid regional tensions. North Korea’s launch of ballistic missiles ahead of the US election raised concerns, although it did not have a significant impact on overall market sentiment.
Richard Drew/AP Photo
European markets and US futures are stable
European markets opened with modest losses, with Germany’s DAX falling 0.1 percent and France’s CAC 40 falling 0.2 percent, reflecting cautious sentiment.
The UK’s FTSE 100 index also fell 0.1 percent. Meanwhile, U.S. futures on the S&P 500 and Dow Jones Industrial Average rose 0.1 percent, showing moderate optimism as investors awaited election results and the Federal Reserve’s decision on rate.
In the United States, the S&P 500 fell 0.3 percent on Monday, while the Dow Jones and Nasdaq each fell on continued concerns about recession risks. Despite the uncertainty, the U.S. stock market as a whole has shown resilience during election years, posting historic gains regardless of which party wins.
Oil prices rise due to supply cuts
Oil prices rose on Tuesday, with U.S. crude up 27 cents to $71.74 a barrel and Brent crude up 23 cents to $75.31. Significant gains came on Monday after Saudi Arabia and other producers said they would delay plans to increase production, a move aimed at stabilizing prices amid concerns over demand worldwide.
Lee Jin-man/AP Photo
Brent prices have struggled this year, weighed down by doubts over Chinese demand as the country grapples with economic challenges. However, the recent rise suggests some hope for a recovery, even if global energy markets remain volatile.
Foreign exchange markets and Fed expectations
In currency trading, the dollar strengthened to 152.36 yen, while the euro appreciated slightly to $1.0886. Investors are watching the Fed, which is expected to cut its benchmark rate again this week, aiming to support the U.S. economy amid concerns about a potential slowdown.
Recent market optimism stems from hopes that rate cuts can ease recession fears, even as the U.S. economy faces pressure from higher interest rates and a potential slowdown.
Graeme Sloan/AP Photo
Markets are aware of past election cycles and note that U.S. stocks rallied after Election Day 2020, despite uncertainty over the final outcome. Analysts say another Trump victory would be less shocking than in 2016, when markets soared on expectations of tax cuts and economic stimulus.
As investors prepare for an eventful week, attention remains focused on how the U.S. election, Fed decisions and potential Chinese stimulus could shape the trajectory of global markets.
This article contains additional reporting from the Associated Press
