Monday, November 7, 2016

Overnight

Caution is the word before Tuesday's election results overnight in Asia as markets are mixed. the Nikkei 225 opened up as investors hugged the sidelines as the index was off 0.2% at 17,148.27 after being higher.

Investors themselves seemed mixed as some see a Clinton victory as calming the market versus the unknown factor of a Trump win. But the reality is after a short term burst either higher or lower depending on who wins the future is quite uncertain given all the trouble around the globe. The ASX 200 was up slightly, 0.1%;  the Kospi up also 0.1%. In Hong Kong the Hang Send Index was up 0.3% and the Shanghai Composite Index tacked on 0.6%.

Reuters reported: Gold steadied early Tuesday along with the dollar, after dropping nearly 2 percent in the previous session, as uncertainty just hours ahead of the U.S. presidential election kept wary investors locked into the safe-haven commodity. The dollar steadied in Asia on Tuesday, keeping gains made in the previous session on the growing prospect of a victory for U.S. Democratic presidential candidate Hillary Clinton after the FBI cleared her of any possibility of criminal charges in its latest probe.

With hours to go before Americans vote, Democrat Hillary Clinton has about a 90 percent chance of defeating Republican Donald Trump in the race for the White House, according to the final Reuters/Ipsos States of the Nation project. Investor sentiment in the euro zone improved further in November, reaching its highest level for the year and easing pressure for further stimulus measures by the European Central Bank, a survey showed on Monday.

A majority of Bank of Japan policymakers believe it could take time for inflation expectations to firm, underscoring lingering doubts on how effective the BOJ's new policy framework would be in achieving its ambitious 2 percent inflation target.  China's gold reserves rose to 59.24 million fine troy ounces (oz) at the end of October, up from 59.11 million a month earlier, the central bank said on Monday. Prices for Brent crude, the international oil benchmark, rose on reports that Russia signaled it would take part in a deal with members of the Organization of the Petroleum Exporting Countries to cut production. Brent was last up 0.2% at $46.22 a barrel in morning Asian trade, though Nymex futures were flat.




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