Global Markets Teeter as US Election Looms and Middle East Tensions Rise
The global economy is holding its breath as the US presidential election draws near and tensions in the Middle East escalate. Asian shares wavered on Monday, while bitcoin surged to a three-month high and gold hit another record peak.
Election Fever Grips Financial Markets
With only two weeks left until the US election, investors are increasingly betting on a Donald Trump victory. The Republican candidate’s policies are seen as inflationary, which has led to a rise in US yields and a stronger dollar. Trump’s stance on cryptocurrencies has also been viewed as favorable, pushing bitcoin up 9.6% last week.
Bitcoin’s Stellar Performance
The world’s largest cryptocurrency continued its upward trajectory, touching $69,487 earlier in the session. Tony Sycamore, a market analyst at IG, believes bitcoin can continue to rise, citing Trump’s lead in key battleground states as a positive factor.
Dollar Strengthens Amid Election Uncertainty
The dollar index hovered near a two-month high on Monday, with the greenback gaining against a basket of currencies. Sterling and the euro dipped slightly, while the benchmark 10-year US Treasury yield ticked up one basis point.
Gold Shines Bright Amid Global Uncertainty
Spot gold peaked at a record $2,727.39 an ounce, extending its rally as investors seek safe-haven assets. Arun Sai, senior multi-asset strategist at Pictet Asset Management, notes that gold has been one of the clearest “Trump trades” so far, given the candidate’s belligerent stance on trade and willingness to weaponize the dollar.
Oil Prices Stabilize After Steep Fall
Oil prices ticked higher on Monday, nursing a steep fall from last week. Brent crude futures were last 0.4% higher at $73.36 a barrel, while US crude ticked up 0.43% to $69.52 per barrel.
Chinese Stimulus Plans Awaited
Investors are eagerly awaiting further details on Chinese stimulus measures, which were first announced in late September. Chaoping Zhu, global market strategist at J.P. Morgan Asset Management, believes concrete plans may not emerge until late October or early November.
As the global economy navigates these uncertain waters, investors will be keeping a close eye on the US election and its potential impact on financial markets.
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