According to recent speculations, Asian stocks are reported to rise soon, driven by positive trends in U.S. markets and investor optimism. Investors are expecting reports from Five of the seven titans– Alphabet, Microsoft, Meta Platforms, Amazon, and Apple – are tentatively scheduled to release their earning reports for the third quarter.
Besides waiting for the reports, they will also tell the influence of the Federal Reserve’s upcoming interest rate decision. On top of that, the U.S. presidential election is just a week away, so, there’s heightened attention on how these factors might impact the market and the economy.
The STOXX Europe 600 index rose about 0.3%, while futures on the S&P 500 and Nasdaq 100 were little changed after Monday’s gains on Wall Street. Moreover, a potential cooling geopolitical situation also aided risk sentiment. Oil prices have been declining even after the Israeli-Iran strike, which was feared by many would lead to significant changes in oil prices.
“Near-term focus is shifting to megacap earnings that kick off today with Google,” said Charu Chanana, chief investment strategist at Saxo Markets. “There is still an expectation that AI spending will be maintained and that could continue to be a significant driver of broader equity momentum.”
Now, amid the U.S. election situation, Bloomberg has issued a Markets Live Pulse survey that explains the beneficial factors of either winning. If Trump can land the Presidential seat, it would be more favorable for stocks and Bitcoin relative to his Democratic opponent, while a Harris presidency would bring slightly more relief in housing costs.
Trump’s chances of winning are on the rise and “that’s seen as good for US stocks in the short run,” said Phillip Wool, head of portfolio management at Rayliant Global Advisors. “Deficits will increase, inflation will come back, and it could slow Fed rate cuts. All of this would put upward pressure on the dollar,” he said.
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