ISTANBUL – Global markets started the week cautiously as the US midterm elections approached, affecting asset prices.
Analysts said the outcome of the elections could affect the Trump administration’s room to maneuver and that the White House might further escalate military tensions with Iran.
Markets remained somewhat optimistic that the US and Iran could reach a deal through intermediaries to fully reopen the Strait of Hormuz, given recent statements from Tehran.
December-delivery Brent crude oil prices fell 3.2 percent to USD109 a barrel on prospects of a US-Iran deal.
Meanwhile, recent data showed that US inflation risks could persist in the coming period, while strong economic activity and the rapid pace of price increases fueled expectations of tighter monetary policy from the Federal Reserve.
The likelihood of the Fed raising rates once more before the year’s end stood at over 70 percent, according to money market estimates, while the upcoming nonfarm payrolls data were expected to shape these expectations.
All eyes turned to the earnings results of major corporations, especially Apple’s, which would be significant in monitoring the impact of artificial intelligence (AI) and technology investments on profitability.
The yield on the 10-year US Treasury note extended its decline into a third consecutive week amid AI-related concerns. The yield was flat at 4.94 percent at the start of trading on Monday.
The US dollar continued to trade sideways at 101.9 at the same time.
Gold plunged 3.6 percent on Oct. 30 to USD3,870 per ounce due to pressure from renewed monetary policy tightening worldwide.
Gold saw some rebound buying and climbed 0.6 percent to USD3,899 per ounce on Monday.
The S&P 500 fell 1.82 percent, the Nasdaq Composite dropped 2.86 percent, and the Dow Jones Industrial Average was down 1.09 percent on Oct. 30. US indexes started the new week on a positive note.
Meanwhile, civil unrest in France dominated the European agenda as French student unions called on high school students to resume sit-ins after Paris’ education commitments did not meet expectations.
The European Central Bank (ECB) appeared increasingly likely to raise rates next month due to persistently high energy prices in Europe.
European Commission President Ursula von der Leyen recently said the EU and Canada could form a partnership closer to membership than their previous relationship, speaking at a summit.
European Council President Antonio Costa said the EU wanted to create something new to define the bloc’s relations with Canada, encompassing everything short of full EU membership.
European stock markets struggled to find direction on Oct. 30 and started Monday on a mixed note.
Near Monday’s close, Asian equity markets traded positively except in Japan.
Manufacturing Purchasing Managers’ Index (PMI) readings released across the region pointed to a slowdown in economic demand.
Japan’s manufacturing PMI was unchanged at 53.3 in October, while China’s manufacturing PMI stood at 52, and India’s reading fell to 54.7.
Japan’s Nikkei 225 fell 0.1 percent, while South Korea’s Kospi soared 2.6 percent, China’s Shanghai Composite climbed 0.6 percent, and Hong Kong’s Hang Seng rose 0.6 percent. (Anadolu)
