(Bloomberg) — US equity futures edged higher, while the dollar was little changed as traders geared up for the presidential contest between Donald Trump and Kamala Harris.
Most Read from Bloomberg
Contracts on US stocks climbed 0.1% after the S&P 500 Index closed lower on Monday. Euro Stoxx 50 futures traded in a tight range, while the 10-year Treasury yield advanced one basis point. The Bloomberg Dollar Spot Index was steady.
In regional equity markets, Chinese stock benchmarks rose more than 2% to lead gains in Asia. Japan’s Nikkei 225 jumped following a public holiday, while shares in Australia and South Korea slipped.
After a cautious start to the day, stocks turned higher upon data that showed China’s service activity expanded at the fastest pace since July, and comments from the premier that the country has ample policy room. Sentiment also got a lift after the nation’s top legislative body reviewed a proposal that aims to reduce the financial burden of local officials.
A greater focus for the week is on the US presidential vote, as polls show Americans narrowly split between Trump and Harris. The likelihood of a disputed result may drag the vote count out for weeks, spurring a potential rise in volatility.
“It would absolutely make a lot of sense for the Chinese government to be keeping some of their stimulus powder dry in expectation and trying to understand what is going to happen out of the United States,” James Sullivan, head of APAC equity research at JPMorgan Securities Singapore, told Bloomberg TV. “A Trump victory is more in the price than a Harris victory.”
There are additional catalysts likely to move the market this week. Election Day will quickly be followed on Thursday by the Federal Reserve’s decision and Jerome Powell’s press conference, where he’ll give details on the central bank’s interest-rate path. A big chunk of US firms are due to report earnings.
“The US dollar is probably the cleanest expression, the most obvious expression for this week,” Chris Weston, Pepperstone Group’s head of research,…
..
