Daily Digest: Tuesday 5th November
Equities
It’s election day in the US, and eyes around the world turn to the polls as the Republican nominee, former President Trump takes on Democrat rival Vice-President Kamala Harris. Asian markets headed higher, the Nikkei 225 (¥N225), Japan’s benchmark index bucked a downtrend trend rising 421.23 points (1.11%) to 38,474.90, in terms of technicals on a one-day time frame the Nikkei RSI sits at 49.43, suggesting the continued presence of selling pressures while the MACD is also trading under its signal line in line with the prevailing trend. In China, the Shanghai Composite (¥SSE) extended gains rising a further 76.78 points (2.32%) to 3,386.99, pushing the index’s five session gains to 3.46%.
European equities traded within much tighter ranges. London listed equities are facing with both Thursday’s BOE interest rate decision and the outcome of the US election, while mainland European equities are largely concerned with the latter. The FTSE 100 (FTSE) erased just under half of yesterday’s gains, falling 11.85 points (0.14%) to 8,172.39, as traders face significant resistance around the 8,200 level, which has experienced a role reversal from support this week. On the continent, the STOXX 600 (STOXX) traded marginally higher rising 0.32 points (0.063%) to 509.53.
Following a weaker session on Monday, US equities rallied at the open signalling that Trump may be pulling ahead in the presidential race from an analyst perspective. The companies comprising the ‘magnificent seven’ all opened higher, with electric automaker Tesla and chipmaker Nvidia leading gains up >1%. Despite an air of political uncertainty, the S&P 500 ($SPX) closed 70.07 points (1.23%) higher at 5,782.76, while the Nasdaq 100 ($NDX) rose 263.86 points (1.32%) to 20,227.46, and the Dow ($INDU) rose 427.28 points (1.02%) to 42,221.88.
What to Watch Tomorrow
Eurozone Services PMI
UK Construction PMI
US Services PMI
US Crude Oil Inventories
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice