Dol­lar dips on US elec­tion jit­ters; stocks edge lower

Kuwait Times - - BUSINESS -

The dol­lar slipped, de­mand for gold picked up and stocks edged lower yes­ter­day as in­vestors sought safe havens amid mount­ing un­cer­tainty about next week’s US pres­i­den­tial elec­tion.

US Trea­sury yields rose as in­vestors awaited the com­ple­tion of the Fed­eral Re­serve’s meet­ing to­day, while oil held just above one-month lows fol­low­ing its sharp slide on Mon­day. The US dol­lar hit its low­est level in more than two weeks against the euro yes­ter­day on US po­lit­i­cal un­cer­tainty, while the Mex­i­can peso hit a more than three-week low on po­si­tion­ing for a po­ten­tial vic­tory for Repub­li­can pres­i­den­tial can­di­date Don­ald Trump.

A Clin­ton win is gen­er­ally seen by an­a­lysts as likely to be a pos­i­tive for the dol­lar. But news on Fri­day that the Fed­eral Bureau of In­ves­ti­ga­tion was prob­ing newly found emails re­lated to US Demo­cratic pres­i­den­tial can­di­date Hil­lary Clin­ton’s use of a pri­vate server con­tin­ued to shake traders’ con­fi­dence in the out­come of the Nov. 8 elec­tion.

“The mar­ket has built up some dol­lar longs and euro shorts in re­cent weeks, and with Fri­day’s news in­creas­ing the un­cer­tainty around the elec­tion out­come, we sus­pect mar­ket par­tic­i­pants are cut­ting back” on those po­si­tions, said Vas­sili Sere­bri­akov, FX strate­gist at Credit Agri­cole in New York.

MSCI’s 47-coun­try “All World” in­dex was flat. Asian stocks propped up the in­dex ear­lier in the ses­sion, helped by stronger-than-ex­pected fac­tory ac­tiv­ity in China. On Wall Street, stocks edged lower, a day af­ter all three ma­jor in­dexes recorded their worst monthly per­for­mance since Jan­uary. In­vestors have been cau­tious due to un­cer­tainty sur­round­ing the elec­tion.

Clin­ton held a five-per­cent­age-point lead over Repub­li­can Don­ald Trump, ac­cord­ing to a Reuters/Ip­sos opin­ion poll re­leased on Mon­day, down only slightly since the FBI said last week it was re­view­ing new emails in its in­ves­ti­ga­tion of Clin­ton ahead of the Nov 8 elec­tion. But a poll by ABC News showed Trump lead­ing by one point and the Los An­ge­les Times put the Repub­li­can can­di­date more than two points ahead.

“The mar­ket is ex­pected to be range-bound un­til the elec­tion re­sults next week,” said Scott Brown, chief econ­o­mist at Ray­mond James in St. Peters­burg, Florida. The Dow Jones in­dus­trial av­er­age fell 26.05 points, or 0.14 per­cent, to 18,116.37, the S&P 500 lost 4.09 points, or 0.19 per­cent, to 2,122.06 and the Nas­daq Com­pos­ite dropped 7.34 points, or 0.14 per­cent, to 5,181.80. — Reuters

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