U.S. Election Angst Continues To Weigh On Markets

investing- U.S. election angst continues to weigh on global markets. In Asia today, the Nikkei closed down 1.8%; the Shanghai Composite edged down 0.65%; and the Hang Seng Index fell 1.45%. In early European trading, the DAX was down 0.74%; FTSE 100 fell 0.41%; and the Euro Stoxx 50 was down 0.57%. U.S. Election Angst
Yesterday the S&P 500 closed near four-month lows at 2112, down 0.68%; it’s down an additional 0.01% in premarket trading. The Dow fell 0.58% and dropped a further 0.09% premarket while the NASDAQ closed down 0.72%, although it is up 0.03% in premarket trading. The VIX continues its upward trend, and has already climbed 0.81% in premarket trading, to 18.73.
Forex -With less than a week to go before Election Day, uncertainty and worry prevail and risk-off sentiment has gripped the markets. The U.S. dollar dropped versus the yen while continuing to lose ground to the euro and pound. However, it could reverse today if the Fed interest rate decision includes a pro-hike statement. The Fed decision is scheduled for 2 PM ET. According to Investing.com, only 7.2% of investors are betting on any sort of increase today. The general consensus remains strong for a December hike.
Overnight in Asia, the Bank of Japan held off on additional stimulus, though the yen still pushed higher as the markets sought out safe havens ahead of next week’s election. Another beneficiary of the search for safe havens was the Swiss franc. No surprise, with Trump’s chances of victory resurgent based on polling released yesterday, the Mexican peso posted its largest fall in two months, dropping yet further in early morning trade.
Commodities Gold continues to rise as investors shift out of equities as a hedge against a possible Trump victory. It reached $1,297.45/ounce in early trading today, adding to yesterday’s upward move when it jumped about 1%, to close at $,1286.40.
At the same time, oil slumped to a five-week low, down to $45.95. Should the OPEC meetings at the end of the month fail to provide news of a production freeze deal, Goldman Sachs warned that oil could head toward $40. Markets now await the EIA’s weekly inventories release, due out later this morning.
The price of gasoline fell 2.62% so far today, but prices could go higher due to yesterday’s Colonial pipeline explosion in Alabama which caused one fatality and several injuries. The pipeline, which runs from Houston to New York, won’t be fixed until at least Saturday.
  Stocks Earnings season continues, with quarterly reports from major companies, including Qualcomm (NASDAQ:QCOM) and Facebook (NASDAQ:FB) on the docket. Facebook is expected to continue its stellar year and report earnings of $0.96 per share on $6.92 billion in revenue.
Following on the heels of Royal Dutch Shell (LON:RDSa) reporting higher than expected earnings there’s reason to be optimistic when Marathon Oil (NYSE:MRO), which has beaten estimates in each of the last four quarters, reports Q3 2016 earnings after the close.
Time Warner (NYSE:TWX), reported this morning, beating expectations by reporting Q3 earnings of $1.83 per share on revenue of $7.2 billion. (Analysts had expected $1.37 per share on revenue of $6.98 billion.). TWX shares are up 2.04% in premarket trading.

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