Published November 4, 2024
By Agbetu Becky
Global stock markets are on the rise today, with major European and Asian markets making gains, thanks to a positive lead from Wall Street over the weekend. This surge comes ahead of the highly anticipated US presidential election, an interest rate decision, and expected Chinese stimulus measures.
The US presidential election is shaping up to be a nail-biter, with Democratic Vice President Kamala Harris and Republican rival Donald Trump running neck and neck. Investors are eagerly watching for any sign of advantage between the two candidates. A victory for Trump is expected to boost the dollar and push up Treasury yields due to his pledges to cut taxes and impose tariffs on imports.
Key Market Movements:
- London: FTSE 100 up 0.6% at 8,229.52 points
- Paris: CAC 40 up 0.4% at 7,434.89
- Frankfurt: DAX up 0.1% at 19,271.49
- Hong Kong: Hang Seng Index up 0.3% at 20,567.52 (close)
- Shanghai: Composite up 1.2% at 3,310.21 (close)
- New York: Dow up 0.7% at 42,052.19 (close)
Oil prices have also rallied, with Brent North Sea Crude up 2.3% at $74.80 per barrel and West Texas Intermediate up 2.5% at $71.20 per barrel. This increase is partly due to Iran’s supreme leader Ayatollah Ali Khamenei’s warning of a “tooth-breaking response” to Israeli attacks.
The Federal Reserve’s latest policy decision, expected this week, will also have significant implications for the markets. Investors anticipate a 25-basis-point rate reduction following the previous 50-point cut.
