Asian equities fluctuate, as traders brace for American elections

Asian equities fluctuate, as traders brace for American elections

On Tuesday, Asian equities fluctuated, with market sentiment tempered on the eve of the American midterm elections, hostile trade policies, not to mention the first key electoral test of Donald Trump's shocking tax cuts.  

MSCI's index of Asia-Pacific equities MIAPJ0000PUS lost 0.1%, suppressed by a dive in Chinese equities as well as technology shares, while Japan's Nikkei soared by 1%.

Additionally, the equities of Asia-Pacific Apple suppliers, including Taiwan's Hon Hai Precision Industry, went down after Apple Inc declined by 2.8% after Apple had ordered smartphone assemblers to suspend plans for extra production lines for the iPhone XR.

The S&P 500 rallied by 0.56%, with financials, including Berkshire Hathaway backed by firm earnings.

Meanwhile, crude prices kept to multi-month minimums after America granted eight countries temporary waivers, so they could keep purchasing oil from Iran.

Ahead of Tuesday's American elections, market participants mostly expect Democrats to dominate the House of Representatives, and Trump's Republican Party is expected to retain the Senate.

If the Republicans manage to retain their House majority, then global equities will most probably jump on expectations for extra tax cuts.

In October, US leader told that his administration was geared towards producing a resolution calling for a 10% tax trim for middle-income households.

Besides this, the 10-year American Treasuries gains accounted for 3.203%, preserving most of its profits after Friday's firm American jobs as well as wage data and also staying not far from its 7 1/2-year maximum of 3.261% recorded on October 9.

A great number of market participants also expect US leader to proceed with his hard line on trade, no matter of the result of the elections.

However, some other experts noted that American shares tended to surge after midterm elections, probably due to the fact that financial markets are prone to pricing in political risks ahead of the American elections.

Similar

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera