Midterm Results Drive Rotation Across Asian Markets: The US midterm results prompted a sharp shift away from Asian chipmakers towards markets including China and Australia. Samsung Electronics and SK Hynix both fell more than 7%, dragging South Korea’s KOSPI down 5.5% as investors assessed the risk of tighter restrictions on data centre construction. In contrast, Hong Kong’s Hang Seng Index gained 5.1%. The divergence reflected concerns over high-growth sectors alongside optimism that the election result could help bring an end to the war in Iran. Nasdaq 100 futures fell 1.1%, while Nvidia declined 4.5%.
Brent Crude Tumbles on Hopes of an Iran Agreement: Brent crude fell 9.9% to $94.20 a barrel as investors bet that Democratic control of Congress would increase pressure for an agreement with Iran. Gold rose 2.1% to around $4,125 an ounce, supported by a weaker dollar and lower Treasury yields.
Treasuries Rally as Oil Prices Ease Inflation Concerns: US government bonds advanced for a second consecutive session as investors anticipated that lower oil prices would ease inflationary pressures. The US 10-year Treasury yield fell by five basis points to 4.84%, its lowest level since 10 September.
Dollar Weakens Across G10 Currencies: The dollar declined against all its G10 peers, with the Bloomberg Dollar Spot Index falling 0.2%. The VIX also retreated, dropping 22% from yesterday’s highs, while Bitcoin recovered to trade around $80,000.
Bank of England Decision in Focus: Attention now turns to the Bank of England’s interest-rate decision at noon, with a 25-basis-point increase almost fully priced in. US initial jobless claims follow at 1:30 pm, ahead of tomorrow’s nonfarm payrolls report.
Economic Calendar
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Bank of England Interest-Rate Decision
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US Initial Jobless Claims
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US Nonfarm Payrolls
Key Market Moves Today
- S&P 500 Futures: -0.12% (7,711)
- Crude Oil: -0.18% ($87.93)
- Spot Gold: +1.52% ($4,122)
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