Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

GLOBAL MARKETS-Stocks swing higher, bonds rally as U.S. vote goes to the wire

Published 2020-11-03, 11:11 p/m
© Reuters.
EUR/USD
-
UK100
-
JP225
-
DX
-
LCO
-
UK100
-
ESH25
-
CL
-
EU50
-
NQH25
-
US10YT=X
-
MIAPJ0000PUS
-
CSI300
-

(Updates prices)

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* S&P futures whipsawed as U.S. vote proves too close to call

* Dollar rallies, 10-yr Treasury yields down sharply

* Gold retreats, oil clings to gains

* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Wayne Cole

SYDNEY, Nov 4 (Reuters) - Share markets swung between losses and gains in wild Asian trading on Wednesday as results from the U.S. presidential election proved far closer than polls had predicted, leaving the outcome utterly in doubt.

Investors had initially wagered that a possible Democratic sweep by Joe Biden could ease political risk while promising a huge boost to fiscal stimulus.

But the mood quickly changed on signs President Donald Trump could well snatch Florida and was much closer in other major battleground states than polls had predicted. (Who is winning? Click on equity futures went on a wild ride, rising then falling, only to climb again as the voting seemed to favour Trump. (For multimedia U.S. election coverage, click: https://www.reuters.com/world/us-election2020

Some investors were now hedging against the risk of a contested election or at least a drawn-out process as mail-in ballots were counted.

"It's a wait-and-see," said Matt Sherwood, head of investment strategy at Perpetual in Sydney.

"I think the odds of a clean (Democrat) sweep are diminishing, almost by the minute. That reduces the possibility, or the likelihood at least of a large stimulus program being agreed to in the first days of a Biden administration."

That saw 10-year Treasury yields fall all the way back to 0.83% US10YT=RR , from a five-month top of 0.93%.

Dealers said investors could be thinking a status quo result would at least lessen political uncertainty and remove the risk a Biden administration would roll back corporate tax cuts.

The tech sector seemed encouraged with NASDAQ futures rising 3.6% NQc1 , while E-Mini futures for the S&P 500 ESc1 swung 1.4% higher. EUROSTOXX 50 futures STXEc1 also turned 0.6% firmer, and FTSE futures FFIc1 gained 0.7%.

Japan's Nikkei .N225 was ahead by 2%, while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.1%.

Chinese blue chips .CSI300 rose 0.5%, with markets uncertain how Sino-U.S. relations would develop from here.

The U.S. dollar also had a roller coaster session, reversing early losses to be last up 0.9% on a basket of currencies at 93.956 =USD . The euro fell back hard to $1.1644 EUR= and away from a top of $1.1768.

Investors are still awaiting the outcome of U.S. Federal Reserve and Bank of England meetings this week, which are expected to at least give a nod to further stimulus.

The Reserve Bank of Australia on Tuesday cut interest rates to near zero and boosted its bond-buying program, adding to the tidal wave of cheap money flooding the global financial system. had recently been buoyed by all this liquidity but ran into profit taking on Wednesday, losing 0.6% to $1,897 an ounce.

Oil prices held gains made after industry data showed crude inventories in the United States dropped sharply. O/R

Dealers noted a returned Republican administration would likely be more positive for the oil industry than Democrats that favoured renewable technology.

U.S. crude CLc1 were up 97 cents at $38.63 a barrel, with Brent crude LCOc1 futures gaining 93 cents to $40.64.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA Key emerging currencies being split by U.S. election

https://tmsnrt.rs/326Toa7 Global markets since Trump's election

https://tmsnrt.rs/3jNwnis

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.