As we reach midweek on Wednesday, 6 November 2024, markets will be heavily influenced by a combination of macroeconomic updates, corporate earnings, and geopolitical developments.
More importantly the outcome of the US presidential election.
KEY INDICATORS
Donald Trump defeats Kamala Harris to win US presidency for second time
Donald Trump has been elected as the 47th president of the United States, according to the Associated Press and other major news networks.
The AP made the decision to call the race for Trump after he won the key battleground state of Wisconsin, the news agency said. Trump had also emerged victorious in a host of other crucial swing states, including Pennsylvania, Georgia and North Carolina.
Energy and commodity prices
With oil prices fluctuating on geopolitical tensions, energy markets remain sensitive.
Any disruptions in supply from oil-producing regions may impact crude prices, affecting energy stocks and inflation expectations across global markets.
Post-US jobs report sentiment
Investors will continue to react to the latest US jobs data and its implications for future Federal Reserve policy.
Should employment and wage growth show resilience, it may fuel expectations for potential rate hikes, impacting bond yields and interest-sensitive sectors, like real estate and utilities.
MARKET MOVERS
DJ30
Possible long preference Long positions above 43645.64 with targets at 43777.83 & 43938.94 in extension. Alternative scenario Below 43377.13 look for further downside with 43125.14 & 42774.02 as targets. The RSI shows upside momentum.
Dow stock futures surge 1,255 points as Trump wins White House
US stock index futures soared Wednesday as Donald Trump was elected the 47th President of the United States, while the Republicans were on course to sweep the Senate and the House.
At 10:10 AM GMT, Dow Jones Futures rose 1,255 points, or 3%.
S&P 500 Futures rose 133 points, or 2.3%.
Nasdaq 100 Futures rose 345 points, or 1.7%.
The dollar and Treasury yields shot up on this notion, with the greenback hitting a near four-month high.
XAU/USD
Possible short indication Short positions below 2662.58 with targets at 2658.56 & 2638.72 in extension. Alternative scenario Above 2698.52 look for further upside with 2706.40 & 2725.49 as targets. The RSI shows downside momentum.
Gold prices slump as dollar surges on Trump election victory
Gold prices fell sharply Wednesday, pressured by a spike in the dollar after victory for Donald Trump in the 2024 presidential election.
At 1:05 PM GMT, spot gold fell 2.2% to USD 2,684.69 an ounce.
Gold futures expiring in December fell 2% to USD 2,694.30 an ounce.
Other precious metals were broadly negative on Wednesday.
Platinum futures down 2.2% to USD 984.35 an ounce.
Silver futures fell 3.1% to USD 31.773 an ounce.
TODAY’S NEWS HEADLINES
US stocks surge to record highs; DJIA gains over 1,000 points after Trump victory
US stocks soared Wednesday as Donald Trump was elected the 47th President of the United States, while the Republicans were on course to sweep the Senate and the House.
At 2:35 PM GMT, the Dow Jones Industrial Average surged 1,220 points, or 2.9%.
The S&P 500 index rose 120 points, or 2.1%,
The NASDAQ Composite climbed 415 points, or 2.3%.
All three indices soared to all-time highs, with the last time the Dow jumped over 1,000 in a single day being in November 2022.
More Iran sanctions and ‘drill baby, drill’: Oil market’s future is still uncertain under Trump
US oil producers are looking forward to less regulations on crude production under a Donald Trump presidency, meaning higher oil supply and consequently lower prices.
But it’s not that straightforward: Trump has also vowed to put more sanctions on Iranian and Venezuelan barrels, meaning the global market could become tighter, potentially boosting prices.
At the same time, the increase likelihood of trade wars under Trump could dampen global economic growth and slow oil demand.
Asia-Pacific markets mixed after Wall Street rallies ahead of US election results
Asia-Pacific markets were mixed Wednesday after Wall Street surged overnight ahead of the US presidential election results.
Japan’s Nikkei 225 led gains, rising 2.61% to end at 39,480.67.
The Bank of Japan September monetary policy meeting minutes showed members were in agreement over the central bank raising rates if economic and price growth meets expectations.
South Korea’s Kospi ended the day down 0.52% to end at 2,563.51.
Hong Kong’s Hang Seng index was down 2.5% as of its final hour of trading.
