MSCI’s gauge of stocks across the globe dropped 0.37%, while MSCI’s broadest index of Asia-Pacific shares outside Japan ended 0.5% lower
Global equity markets lost ground on Monday as traders remained cautious amid growing geopolitical tensions and uncertainty over the US presidential election, helping to push gold futures to new highs.
Gold prices soared to a record high on Monday and were little changed at $2,719.33 an ounce. US gold futures settled 0.3% higher at $2,738.9.
The benchmark S&P 500 and Dow closed lower, with defensive stocks including real estate and healthcare among the leading decliners. The Nasdaq ended slightly higher, with Nvidia closing at a record high, ahead of a busy week for corporate earnings.
The DJIA declined 0.80%, to 42,931.60, the S&P 500 dropped 0.18% to 5,853.98 and the Nasdaq Composite added 0.27% to 18,540.01.
The European shares index declined 0.66%, while MSCI’s gauge of stocks across the globe dropped 0.37%. Overnight in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan ended 0.5% lower.
There’s just tension around the earning season kicking off in earnest and then, of course, the elections two weeks away even though we haven’t had the typical anxiety over elections that we normally see in September and October, according to James St. Aubin, chief investment officer at Ocean Park Asset Management in Santa Monica, California (US).
Oil prices settled up nearly 2% after a more than 7% decline last week. Brent crude futures settled up 1.68% at $74.29 a barrel, while US WTI crude futures were 1.94% higher at $70.56 a barrel.
Markets are pricing in an 89.3% probability for a cut of 25 bps at the Federal Reserve’s November meeting, with a 10.7% probability of the central bank holding rates steady, as per CME’s FedWatch Tool. The yield on benchmark US 10-year notes increased 11.9 bps to 4.194%.
The dollar jumped, buoyed by a rise in US bond yields. The euro was down 0.46% at $1.0815, while the pound softened 0.51% to $1.2982. Against the Japanese yen, the dollar firmed 0.86% to 150.79.
The ECB last week cut rates for the third time this year. Data on Monday showed German producer prices declined more than expected in September.
The dollar index, which tracks its performance against a basket of currencies including the yen and the euro, gained 0.49% to 103.97.
