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Markets Update: Gold prices hit a record high and the dollar surged, pressuring the yen and euro, while Asian stocks fluctuated amid cautious trading ahead of the U.S. election.
Global Markets Roundup: 23 October 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Gold prices jumped to record high and the dollar was on the rise again on Wednesday, keeping the pressure on the yen and the euro, while stocks in Asia stuttered as investors were reluctant to place major bets ahead of a hotly contested U.S. election. The shifting expectations around how fast and deep the Federal Reserve will cut rates have also hurt risk sentiment, with traders now anticipating the U.S. central bank to be measured in its easing. That has taken U.S. Treasury yields to a three-month peak and the dollar to multi-month highs against the euro, sterling and the yen, which is now back at 150 per dollar levels, prompting verbal warnings from Japanese officials.
The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) edged up by 0.06%. Tokyo's Nikkei NI225 saw a slight decrease in early trading. China and Hong Kong stocks had a stable opening on Wednesday, with government support for the economy helping major indexes reach higher levels. Investors are closely watching the shift in momentum towards a potential Donald Trump presidency, as his proposed policies, such as tariffs and restrictions on undocumented immigration, are expected to raise inflation. This has bolstered the dollar amid expectations that U.S. interest rates could stay elevated for a longer period than previously thought. Betting websites have shown an increase in Trump's chances of winning over Vice President Kamala Harris, the Democratic candidate, although opinion polls indicate a tight race for the White House. With less than two weeks until the Nov. 5 election, investors are preparing for market volatility. The yield on the benchmark U.S. 10-year notes US10Y stood at 4.216% during Asian trading hours after hitting a three-month peak of 4.222% in the previous session.
In the foreign exchange markets, the dollar index DXY, which compares the U.S. currency to six other currencies, reached 104.17, its highest point since August 2. The yen USDJPY dropped to a three-month low of 151.74 against the dollar in Asian trading, while the euro EURUSD fell to $1.0792, its lowest level since August 2. EURUSD | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, gold prices reached a new peak of $2,749.07 during early trading, but later retreated slightly to close around $2,743.42. This movement was influenced by ongoing conflicts in the Middle East, uncertainties surrounding the Federal Reserve's future actions, and the upcoming U.S. election, all of which have heightened demand for safe-haven assets. Brent crude futures (BRN1!) dropped by 0.4% to $75.73 per barrel, while West Texas Intermediate crude futures (CL1!) saw a 0.38% decline to $71.47 per barrel following a significant increase earlier in the week. The soybean contract ZS1! on the Chicago Board of Trade increased by 0.1% to $9.92-1/2 per bushel, corn ZC1! rose by 0.1% to $4.16-3/4 per bushel, and wheat ZW1! declined by 0.7% to $5.72 per bushel. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team