Global stock markets mostly fell on Thursday as investors faced uncertainty ahead of the upcoming US election.
In Europe, France’s CAC 40 index dropped 0.7% to 7,378.45, while Germany’s DAX fell 1.1% to 19,257.34. The UK’s FTSE 100 saw a decline of 0.6%, closing at 8,114.02. In the US, futures indicated a downward trend, with Dow futures down 0.5% at 42,149.00 and S&P 500 futures slipping nearly 0.8% to 5,807.50.
Asian markets also saw losses, with Japan’s Nikkei 225 closing down 0.5% at 39,081.25. Australia’s S&P/ASX 200 fell 0.3% to 8,160.00, and Hong Kong’s Hang Seng index lost 0.1% to end at 20,359.95. Conversely, the Shanghai Composite managed a slight gain of 0.4%, finishing at 3,279.82. South Korea’s Kospi was notably affected, dropping 1.5% to 2,556.15, influenced by North Korea’s recent intercontinental ballistic missile test, which appeared to be aimed at garnering U.S. attention ahead of the elections.
Investor sentiment was further impacted by the Bank of Japan’s decision to maintain its benchmark interest rate at 0.25%, amid ongoing political uncertainty in Japan following the ruling party’s loss of its majority in recent parliamentary elections.
Anticipation surrounding upcoming earnings reports in Asia and around the world contributed to a cautious mood among investors. A recent US report indicated that non-government employers accelerated hiring in October, contrary to economists’ expectations for a slowdown. This development may foster optimism for a more comprehensive jobs report expected from the US government on Friday.
The Federal Reserve’s strategy to curb inflation through significant interest rate hikes has raised concerns about a potential economic slowdown. However, traders are now anticipating a quarter-point cut to the federal funds rate in the upcoming meeting next week, as indicated by CME Group data.
In energy markets, benchmark US crude rose by 18 cents to $68.79 a barrel, while Brent crude increased by 15 cents to $72.70 a barrel. In currency trading, the US dollar fell to 152.14 Japanese yen from 153.31 yen, and the euro exchanged at $1.0855, down from $1.0858.
