Global Market Today: Asian shares retreat as US futures slide on Midterm election bets
Contracts for the S&P 500 Index dropped 0.3%, erasing an initial gain of 0.5%, while those for the Nasdaq 100 declined 0.6%. The dollar dropped against most of its Group-of-10 peers and the yield on the benchmark 10-year Treasury note fell four basis points to 4.92%. The MSCI Asia Pacific Index dropped 0.2% even as South Korea’s Kospi Index jumped 1%.
Asian stocks retreated as US futures declined on early midterm election results that indicated a higher likelihood of Democrats gaining control of Congress. The prospect of gridlock in Washington after a potential Democratic sweep raised concerns about market uncertainty heading into year-end.
Technology shares rebounded earlier, but now investors are focusing on the potential impact of the midterm results on the outlook for AI spending and geopolitical risks. The uncertainty surrounding the election outcomes may have removed a key source of optimism for the dollar, while making US Treasuries more attractive.
The dollar weakened against most Group-of-10 currencies, while the benchmark 10-year Treasury note yield dropped to 4.92%. MSCI's Asia Pacific Index fell 0.2%, despite South Korea's Kospi Index climbing 1%.
Millions of Americans cast ballots in congressional races and local issues, with polls closing at 6 p.m. Eastern time. Prediction markets indicated a high probability of a Democratic victory in both the House and Senate, suggesting possible gridlock in the US legislature.
Analysts noted that the election results could act as a "clearing event," removing some uncertainty from the market. However, geopolitical risks, particularly between the US and Iran, remained in focus as talks continued to find a resolution. The labor market showed signs of resilience, with job openings rising to a four-month high and layoffs declining to their lowest level in over a year.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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