(Nov 2): Stocks will look to rebound from a tech-induced sell-off in Asia as traders brace for a crucial week that could set the tone for the remainder of the year, with the U.S. election and a Federal Reserve policy meeting.
Equity futures in Japan and Australia ended Friday higher, indicating the Asia-Pacific region can start November on the front foot following two months of losses for global equities. The pound slipped as increased restrictions in England aimed at controlling the coronavirus overshadowed signs of progress on Brexit. Traders will later watch the release of data on Chinese manufacturing for any clues on the trajectory of the recovery there.
The main event this week will be Tuesday’s U.S. election, with Democrat Joe Biden leading President Donald Trump in polls. Virus developments are also front and center with the recent surge in U.S. cases showing signs of slowing Sunday, while countries in Europe move to further restrict the movement of people in a bid to contain the spread.
“Whichever way you look at it, this coming week will be huge for U.S. and global markets,” said Simon Ballard, chief economist at First Abu Dhabi Bank Pjsc. “We see the potential for a sharp rise in volatility around these events — and all in the context of a still deteriorating Covid-19 situation across much of the U.S., Europe and elsewhere.”
These are some key events coming up:
Earnings are due from companies including Nintendo Co., SoftBank Group Corp., Macquarie Group Ltd., Toyota Motor Corp., Alibaba Group Holding Ltd. and AstraZeneca Plc.
U.S. Presidential election on Tuesday.
EIA crude oil inventory report on Wednesday.
Fed policy decision on Thursday.
The U.S. labor market report is due Friday.
Here are the main moves in markets:
The S&P 500 fell 1.2% on Friday.
Futures on Japan’s Nikkei 225 rose 1.4% on Friday.
Hang Seng Index futures were little changed on Friday.
Futures on Australia’s S&P/ASX 200 Index advanced 0.9% on Friday.
The yen was at 104.55 per dollar, up 0.1%.
The offshore yuan was at 6.6964 per dollar.
The euro bought US$1.1651.
The pound slid 0.2% to US$1.2924.
The yield on 10-year Treasuries rose five basis points to 0.87% on Friday.
West Texas Intermediate crude slid 1.1% to US$35.79 a barrel on Friday.
Gold rose 0.6% to US$1,878.81 an ounce on Friday.