On November 5, 2024, U.S. elections are taking center stage as polls open across the East Coast, prompting significant attention from investors and analysts alike. Historical trends indicate that stock markets typically rise in the aftermath of elections, despite the immediate volatility observed prior to the polls. On November 4, 2024, major U.S. stock indexes experienced declines, with the Dow Jones falling by 0.61% to 41,794.60, the S&P 500 down 0.28% to 5,712.69, and the Nasdaq decreasing by 0.33% to 18,179.98. This downward trend reflects the uncertainty surrounding the election results and their potential implications for economic policy. [0ca2063c]
In Asia, shares exhibited a mixed performance as investors reacted to the U.S. election news. Japan's Nikkei 225 gained 1.4%, reaching 38,571.64, while Hong Kong's Hang Seng surged 1.4% to 20,853.45. In contrast, South Korea's Kospi fell by 0.4% to 2,578.50, influenced by recent missile launches from North Korea, which have heightened regional tensions. Australia's S&P/ASX 200 also dropped by 0.4% to 8,131.80, reflecting a cautious sentiment among investors. [1b272836]
European markets opened little changed on the same day, with the Stoxx 600 up just 0.02%. Mining stocks rose by 0.49%, while oil and gas sectors fell by 0.4%. Traders are closely monitoring earnings reports from major companies such as Saudi Aramco, Adecco, and DHL Group, which reported a 6.9% drop in net profit to 751 million euros, falling below expectations. Additionally, Hugo Boss reported a 7% drop in operating profit to 95 million euros, although this was above forecasts. The upcoming U.S. election results are anticipated to impact Congress and tax policy, adding to the cautious market sentiment. [41dca516]
The Federal Reserve is expected to cut interest rates by 0.25% on Thursday, which could further influence market dynamics as investors adjust their strategies in anticipation of economic changes post-election. Additionally, oil prices saw a slight increase, with U.S. crude trading at $71.03, while the dollar strengthened against the yen, indicating a complex interplay of factors affecting the markets. [1b272836]
Moreover, weak revenue from China is impacting U.S. firms such as Apple and Starbucks, as China reviews its local government debt limit. Despite these challenges, consumer confidence in equities remains at an all-time high, suggesting that while markets may experience short-term volatility, they typically recover within a month following elections. [0ca2063c]
Overall, the mixed performance of Asian markets, the cautious sentiment in Europe, and the ongoing developments in the U.S. reflect a broader global trend as investors navigate the implications of the upcoming election and its potential impact on economic policies. [0ca2063c]