Following an attempted assassination, investors increased their bets that Donald Trump would win the US presidential election, which resulted in a rise in the currency and US stock futures.
Treasuries declined as the dollar appreciated vs all other Group of 10 currencies, indicating the belief that Trump’s return to the White House will result in increased trade tariffs and laxer fiscal policies. The yield spread between the two- and 10-year Treasury notes reached its biggest point since January as long-dated yields increased further. Contracts on the Nasdaq 100 index increased by 0.5%, while those on the S&P 500 added by 0.3%, in the equities markets.
In Europe, where the Stoxx 600 index dipped, the mood was less positive for stocks. The luxury market was the biggest drag, with Swatch Group AG plunging after a dismal report and Burberry Group Plc plunging as much as 15% after an earnings warning. Weak Chinese economic growth data hurt mining stocks.
Europe’s stocks were in poorer shape, with the Stoxx 600 index slipping. The largest negative impact on Burberry Group Plc, which fell as much as 15% following an earnings warning, was the luxury industry. After releasing a poor update, Swatch Group AG plummeted. Weak Chinese economic growth data hurt mining stocks.
Asian stocks fell, with Chinese equities in Hong Kong continuing to lose ground after the second-largest economy in the world expanded at its slowest rate in five quarters.
Also Read-
Iron ore and copper prices increased along with the weak economic figures, supported by speculation that the nation would unveil stimulus plans.
Additionally, Monday’s events come after what many saw as a turning point in the Federal Reserve’s efforts to combat inflation, with two rate cuts in 2024 appearing increasingly likely as a result of positive economic data. Later on Monday, Chair Jerome Powell and President Mary Daly of the San Francisco Fed are scheduled to speak.