On Tuesday morning (5 November, 9:28 AM, GMT+7, Bangkok time), indices in Asia Pacific traded mixed in anticipation of the upcoming U.S. presidential election and the likelihood of the Federal Reserve implementing an interest rate cut later this week.
As per the CME Group’s FedWatch Tool, traders expect a 99% probability of a 0.25% rate decrease following the central bank’s policy meeting, which comes after a 0.50% drop in September.
Additionally, investors are closely monitoring the imminent interest rate decision on Australia’s central bank. HSBC and the Commonwealth Bank of Australia analysts are predicting that the Reserve Bank of Australia will maintain the current cash rate without changes.
South Korea’s KOSPI dropped by 0.54% to 2,574.98. Australia’s ASX 200 slid by 0.47% to 8,126.1, while Japan’s NIKKEI rose by 1.18% to 38,502.28.
As for stocks in China, Shanghai’s SSEC grew by 1.09% to 3,346.28. Hong Kong’s HSI increased by 0.5% to 20,670.14, and Shenzhen’s SZI escalated by 1.8% to 10,855.12.
Meanwhile, the US stock markets edged down on Monday as the Dow Jones Industrial Average (DJIA) declined by 0.61% to 41,794.6. NASDAQ decreased by 0.33% to 18,179.98, and S&P 500 lost 0.28% to 5,712.69. VIX climbed by 0.46% to 21.98.
As for commodities, oil prices settled higher on Monday following OPEC+’s decision to postpone the scheduled increase in output for an additional month. This development comes as the market prepares for a pivotal week, highlighted by the U.S. presidential election and a significant meeting in China. Brent futures surged $1.98 or 2.71% to $75.08 a barrel, and the West Texas Intermediate (WTI) increased $1.98 or 2.85% to $71.47 per barrel.
This morning, Brent futures grew 8 cents or 0.11% to $75.16 a barrel, and the WTI gained 7 cents or 0.1% to $71.54 per barrel.
Meanwhile, gold futures dipped 0.09% to $2,743.6 per Troy ounce.
