Financial markets are expected to continue to be volatile ahead of US election results. The latest polls show Biden has a clear lead nationally, but there is concern Democratic support is being over-counted. The best way of protecting your portfolio from the downside that an election offers is to ensure they have a truly diversified portfolio.
Global stocks trading higher on Tuesday supported by expectations of a win for Joe Biden in the US presidential election and also strong manufacturing data from the US, Eurozone, and China.
Crude oil prices rebounded from the fresh weekly lows on Monday after reports that Russia is considering a possible extension of oil output restrictions into the first quarter of 2021 in the light of rising coronavirus cases worldwide.
In the currency market, the US dollar extends lower as the market participants expect that a win for Democratic candidate Joe Biden will pave the way for another stimulus package that the US markets had been long expecting.
The gold price climbed back to near the $1900 psychological area supported by the weaker dollar, US election uncertainty, and surging new COVID-19 cases.
On the data front, The US ISM Manufacturing Report on Business PMI for October came in at 59.3, up 3.9 percentage points from September’s 55.4 level.
During the Asian session, the Reserve Bank of Australia reduced its official cash rate to historic lows of 0.1% from 0.25% during its November meeting. "At its meeting today, the Board decided on a package of further measures to support job creation and the recovery of the Australian economy from the pandemic," RBA Governor Philip Lowe said.
Globally, more than 46.6 million people have been confirmed infected and more than 1.2 million have died, according to Johns Hopkins University. India has recorded 38,310 new COVID-19 infections - the ninth straight day that numbers have been under 50,000.
"We need countries to again invest in the basics so that measures can be lifted safely, and governments can hopefully avoid having to take these measures again," WHO Director-General Dr. Tedros Adhanom Ghebreyesus said.
DOLLAR INDEX: The index trades below 93.70 during the European session after it climbed to a fresh weekly high of 94.30 on Monday.
The important levels to watch for today: Support- 93.35 and 93 Resistance- 94.10 and 94.35.
GOLD: The yellow metal hovers near the $1900 zones. If the bullish momentum continues the next upside to watch $1906 and 1920. On the other side, the immediate support at $1890 followed by $1882.
The important levels to watch for today: Support- 1890 and 1882 Resistance- 1906 and 1920.
Quote of the day: Buy things that are going up, sell things that are going down. And when they stop, get out. – Rob Smith.