Global Markets Dip Ahead of US Election
Global stock markets faced a decline on Thursday as investors grappled with the uncertainty surrounding the upcoming US election next Tuesday. Major European indices, including France's CAC 40, Germany's DAX, and Britain's FTSE 100, all experienced losses in early trading. US stock futures also pointed towards a lower opening, with Dow futures down 0.5% and S&P 500 futures down nearly 0.8%.
In Asia, Japan's Nikkei 225 dipped 0.5%, while Australia's S&P/ASX 200 slipped 0.3%. Hong Kong's Hang Seng lost 0.1%, while the Shanghai Composite managed a slight gain of 0.4%. South Korea's Kospi, however, saw a significant drop of 1.5% following North Korea's test launch of a new intercontinental ballistic missile.
The Bank of Japan's decision to keep its benchmark rate unchanged at 0.25% also contributed to the cautious market sentiment. Additionally, Japan's political landscape remains uncertain after the governing party lost its majority in the lower house of parliament in recent elections.
Upcoming earnings releases in Asia and globally further added to the wait-and-see mood among investors.
Meanwhile, a US report suggesting stronger-than-expected hiring outside the government in October raised optimism for Friday's comprehensive jobs report from the US government. This report could provide further insights into the health of the US economy.
Despite the recent interest rate cuts by the Federal Reserve, concerns remain about the potential for a recession. Traders largely anticipate the Fed to cut its federal funds rate by a quarter of a percentage point at its next meeting next week.
In energy markets, benchmark US crude rose slightly, while Brent crude, the international standard, also saw a small increase. The US dollar weakened against the Japanese yen, while the euro edged lower against the dollar.