Yoopya with Associated Press
World shares were mixed on Tuesday, with major benchmarks in Asia gaining more than 1%, as investors awaited the outcome of the U.S. presidential election and other potentially market-rattling events this week.
This week brings bring various potential flashpoints, among them Election Day in the United States. But the results may not be known for some time as officials count all the votes, and the uncertainty could roil markets.
Adding to the potential for volatility, the Federal Reserve will also be meeting on interest rates later this week. The widespread expectation is for it to cut its main interest rate for a second straight time.
The futures for the S&P 500 and for the Dow Jones Industrial Average were 0.1% higher.
In early European trading, Germany’s DAX edged 0.1% lower to 19,125.18 while the CAC 40 in Paris shed 0.2% to 7,356.02.
Britain’s FTSE 100 was down 0.1% at 8,179.73.
Share prices surged on Chinese markets as investors anticipated moves by Beijing to boost the world’s second-largest economy during a meeting of the Standing Committee of China’s National People’s Congress.
Hong Kong’s Hang Seng jumped 2.1% to 21,006.97, while the Shanghai Composite index surged 2.3% to 3,386.99.
Britain’s FTSE 100 was down 0.1% at 8,179.73.
Share prices surged on Chinese markets as investors anticipated moves by Beijing to boost the world’s second-largest economy during a meeting of the Standing Committee of China’s National People’s Congress.
Hong Kong’s Hang Seng jumped 2.1% to 21,006.97, while the Shanghai Composite index surged 2.3% to 3,386.99.
South Korea’s Kospi fell 0.4% to 2,576,88 after the country’s military said North Korea launched multiple short-range ballistic missiles toward its eastern sea, continuing its weapons demonstrations ahead of the U.S. presidential election.
The S&P/ASX 200 in Australia dropped 0.4% to 8,131.80 as the central bank kept its benchmark interest rate unchanged.
On Monday, the S&P 500 slipped 0.3%, remaining near its record set last month. The Dow Jones Industrial Average fell 0.6%, while the Nasdaq composite slipped 0.3%.
The hope that’s propelled U.S. stock indexes to records recently is that the U.S. economy can remain resilient and avoid a long-feared recession, in part because of the coming cuts to rates expected from the Fed.
The broad U.S. stock market has historically risen regardless of which party wins the White House. And in 2020, U.S. stocks climbed immediately after Election Day and kept going even after former President Donald Trump refused to concede and challenged the results, creating plenty of uncertainty. A large part of that rally was due to excitement about the potential for a vaccine for COVID-19, which had just shut down the global economy.
A Trump victory would be less of a surprise to markets this time around than in 2016, when Treasury yields soared on expectations for tax cuts that could further inflate the nation’s debt or fuel a stronger U.S economy.
In the oil market early Tuesday, the price for a barrel of U.S. crude gained 27 cents to $71.74. On Monday, it rose 2.8% after Saudi Arabia and other oil producers said they would delay plans to increase the amount of crude they produced.
Brent crude, the international standard, advanced 23 cents to $75.31 per barrel. It rose 2.7% on Monday. The price of Brent is still down for the year so far, in part because of worries about how much demand will come from China given its economic challenges.
In currency dealings, the dollar rose to 152.36 Japanese yen from 152.10 yen. The euro climbed to $1.0886 from $1.0880.
Author:
ELAINE KURTENBACH | Based in Bangkok, Kurtenbach is the AP’s business editor for Asia, helping to improve and expand our coverage of regional economies, climate change and the transition toward carbon-free energy. She has been covering economic, social, environmental and political trends in China, Japan and Southeast Asia throughout her career.
