-
FTSE 100 on the rise as miners lead the push.
-
US election ahead, with Trump appearing to be in the driving seat.
-
AUD on the rise after RBA rate pause.
Its election day, and markets appear to be taking the uncertainty in their stride. European equities are on the rise, with the FTSE 100 on course for its third consecutive day of gains. One area of strength has come from the UK-listed miners, with the recent rebound in the Chinese manufacturing PMI providing the basis for optimism around a potential resurgence in response to recent stimulus measures. With the Chinese National People’s Congress’ Standing Committee meeting this week, there is an expectation that we will see yet another major stimulus announcement in the near-future. Gains for Copper and Iron ore prices highlight the expectation that we will see greater demand for major infrastructure projects irrespective of who takes the White House, while the Chinese recovery provides a positive backdrop for the commodity bulls to hang their hat on.
Today sees the US electorate head to the polls, in a hotly contested election that has huge implications for global markets over the coming years. Despite a brief spike in support for Harris off the back of the weekend polls, we have seen the betting markets push back in the direction of a Trump victory since. While many have put the rise of US yields and the dollar down to the so-called ‘Trump Trade’, the weakness seen since Friday’s weak payrolls figure highlights the fact that much of it came as a result of the strong jobs report a month ago. The conjecture over what will perform best in each circumstance ultimately comes back to the idea that markets will be happy to see a split congress which limits the ability to push through any of the more extreme policies.
An overnight rate pause from the RBA has helped push the Australian dollar sharply higher across the board. In an environment where most of the central banks are firmly in easing mode, the data dependent approach from the RBA looks to solidify a prolonged period of inaction as inflation remains well above their target across both headline and core (trimmed mean) metrics. Despite the RBA forecasts pointing towards higher unemployment and lower GDP, the strength of the AUD highlights the perception that we could yet wait a while until the RBA finally starts to take that first step towards lower rates.
This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regards to past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD trades sideways near 1.0900 amid cautious optimism
EUR/USD trades sideways near 1.0900 on Tuesday. The US Dollar looks to stabilize amid cautious optimism, as uncertainty over the US presidential election outcome lingers. US ISM Services PMI is also in focus, as Americans head to the polls.
GBP/USD clings to modest gains below 1.3000, awaits US election result
GBP/USD trades marginally higher on the day but remains below 1.3000 after finding support near 1.2950 on a broadly subdued US Dollar. Traders eagerly await the outcome of the US presidential election, refraining from placing fresh bets on the major.
Gold holds steady below $2,750 as markets gear up for US election
Gold attracts dip-buyers after touching a one-week low on Tuesday and trades above $2,740. XAU/USD draws support from a combination of factors. Fed rate cut bets, declining US bond yields and subdued USD demand continue to act as a tailwind for the precious metal.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.