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Market News Trump is leading in the election. Technology stocks to outperform the market while dollar rises and gold falls

Trump is leading in the election. Technology stocks to outperform the market while dollar rises and gold falls

According to the results of the early elections, Trump slightly leads Biden in several battlefield states.

TOPONE Markets Analyst
2020-11-04
371

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Gold: The price of gold fell. Spot gold fell 0.5% to US$1,898.97 per ounce, reducing the previous decline of more than 1%. Some investors bought on dips. US gold futures fell 0.5% to $1,900.20 per ounce.


Spot silver fell 1.7% to $23.75 per ounce. Spot platinum fell about 1% to US$858.38, and spot palladium fell 0.5% to US$2,270.78.


Harshal Barot, a senior research consultant in South Asia at Metals Focus, said, “Only when a clear general election result is obtained, the gold market will be determined.”


However, Barot pointed out that a group of strategic investors are eager to buy gold on dips. "From the perspective of the increase in new crown cases and new lockdown measures, there are still many uncertainties in the global economy."


Forex: The US dollar index rose 0.8% to a high of 94.3. The euro fell 0.96% against the US dollar and hit 1.1603 as low. The pound exchange rate fell 0.95% to as low as 1.2935.


 The offshore renminbi (CNH) fell 916 pips or 1.37% against the US dollar, to as low as 6.7745; every one hundred Hong Kong dollars could be exchanged for 86.89 yuan. The dollar stood at 105.16 against the yen, and at 7.3733 per hundred yen against the Hong Kong dollar.


Crude oil: US oil closed at a 4-1/2-month low. New York Mercantile Exchange December crude oil futures, the transaction price rose by 2.36% before the deadline, trading at USD38.55 per barrel. The January transaction price of Nymex Brent crude oil rose by 2.06% to USD40.53 per barrel; while the contract price of Brent crude oil and crude oil was set at USD1.98 per barrel.


Stocks: The Nikkei Index .N225 closed 1.72% higher to 23,695.23 points. It rose more than 2% in early trading to its highest level since February.


The preliminary results of the US general election showed that the competition between the two candidates was tighter than expected, and a familiar scene appeared in the US stock market: technology stocks, also known as "home-concept stocks," far outperformed the market.


The December Nasdaq 100 index futures rose 3.7% on Wednesday, and the increase has now narrowed to 2.6%, still far exceeding the 0.84% of the US S&P 500 index futures.


As for US stock futures, Dow futures rose 0.87% to 27,615 points; S&P futures rose 1.83% to 3,423 points; Nasdaq futures also surged 3.83% to 11,696 points.

Focus on tonight
November 03, 23:00 (GMT+8) US October ISM Manufacturing Index
November 04, 20:00 (GMT+8) UK Central Bank Interest Rate Resolution in November
November 04 20:00 (GMT+8) U.K. Central Bank Asset Purchase Scale in November
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