Global markets show varied results on Monday as investors anticipate US election results


(MENAFN) Global markets showed a mixed performance on Monday as investors anticipated the outcome of the close US presidential race between Vice President Kamala Harris and former President Donald Trump, both polling at approximately 48.5 percent. The election hinges on results from seven key swing states, with Trump currently leading in five of these, while Harris holds narrow leads in the remaining two.

Trump’s proposed policies for his presidential term include new tariffs, tax reductions, and increased reliance on fossil fuels. In contrast, Harris advocates for a continuation of policies similar to those under President Joe Biden, focusing on lowering costs and reducing taxes for middle-income Americans. The differing policy approaches are adding to the market’s anticipation as investors weigh potential economic impacts.

In the financial realm, the Federal Reserve is expected to lower its policy rate by 25 basis points to a range of 4.50–4.75 percent this week, following the latest employment data. Additionally, the probability of another 25-basis-point rate cut in December remains high, with money markets estimating an 82 percent chance. Analysts believe the Fed’s rate decision and comments from Fed Chair Jerome Powell will significantly affect asset prices and provide insights into the central bank’s future strategy.

In corporate news, Trump Media and Technology Group’s stock surged by over 12 percent on Monday as election-related volatility heightened. US chipmaker Nvidia will join the Dow Jones index on Friday, taking Intel’s place, which caused Nvidia’s shares to rise 0.5 percent while Intel’s dropped over 3 percent. In the bond market, the US 10-Year Treasury futures yield stands at 4.31 percent as of Tuesday, and the US Dollar Index opened at 103.9. Gold prices saw slight movement, with the price per ounce closing Monday at USD2,737.5 and trading marginally lower on Tuesday at USD2,735.

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