US Stock Futures March Higher Ahead of Elections

Equities

Major US stock index futures edged higher ahead of the anticipated US presidential elections. The polls are suggesting that Joe Biden is more likely to win with a vast difference, which is easing investors woes over contested elections. On the other hand, the strong economic data fueled the upside rally, where the ISM Manufacturing PMI came in at 59.3, its highest reading in almost two years. The Dow Jones Industrial Average futures rose to 27048, the S&P500 futures advanced to 3324, and Nasdaq futures recovered to 11124.

USD

The dollar index, which measures the greenback against a basket of major currencies, is drifting south ahead of the elections, falling to 93.90. The better-than-expected manufacturing PMI bolstered risk sentiment, where the flow to risker assets weighed on the dollar. The EURUSD rose to $1.1665, the GBPUSD rallied to 1.2936, and the USDJPY eased to 104.63.

AUD

The Australian dollar was softer today following the Reserve Bank of Australia monetary policy meeting. As widely expected, the board agreed to lower interest rates to 0.10% from 0.25% and expanded the asset purchases program by 100 billion Australian dollars. In his presser, Governor Lowe, declared that the bank reached its lowest bound on interest rates, and further easing would be implemented by additional asset purchases. The AUDUSD eased to $0.7028, and the EURAUD advanced to 1.6575.

Metals

Precious metals prices settled higher for the second consecutive day as investors grew cautious ahead of US elections. The price of a gold ounce rose to $1898, the price of a silver ounce inched higher to $24.19, and palladium futures rebounded to $2242.

Oil

Oil prices edged higher, recovering partial losses amid optimism over supply cuts. The rising coronavirus cases around the world triggered movement restrictions, which would weigh on oil demand levels for the coming weeks. However, Investors are hoping that oil producers will intervene and ease supplies to stabilize the market. The West Texas Intermediate crude December delivery rose to $37.30, and the Brent Blend January delivery bounced to $39.30.

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