On Wednesday, global stocks edged lower amid lackluster trading as the US election approaches, while gold prices pulled back from record highs due to a strengthening US dollar. Investors are reevaluating how much the Federal Reserve might need to cut interest rates after recent economic data indicated that the economy continues to expand and create jobs.
Markets are pricing in a 92% chance of a 25-basis-point cut at the Fed's next meeting in November, along with another 25-basis-point cut by year-end. Just a month ago, traders anticipated as much as a full percentage point in cuts by January. The yield on benchmark US 10-year notes reached three-month highs, last rising 3.2 basis points to 4.238%.
On Wall Street, all three major indices finished lower, primarily driven by losses in consumer discretionary, technology, and communication services stocks. In contrast, real estate and utilities sectors showed the most significant gains.
The likelihood of Republican candidate Donald Trump defeating Democratic candidate Kamala Harris has recently increased on betting platforms, although opinion polls indicate a very tight race for the White House. The potential for another Trump presidency has investors concerned due to his policies, which include tariffs and restrictions on undocumented immigration, expected to drive inflation higher.
Gold retreated from record highs as the US dollar gained strength. The demand for safe-haven gold is partly driven by election-related worries and geopolitical tensions in the Middle East and Europe. Gold, which has risen 33% this year, was last down 1.19% at $2,715.62 an ounce, while US gold futures fell 0.1% to $2,741.50 an ounce after hitting a record high of $2,758.37 earlier in the session.
Oil prices declined after data showed that US crude inventories rose more than expected, despite a rebound in refining activity. Brent crude futures settled at $74.96 per barrel, down 1.42%, while US West Texas Intermediate crude futures closed down 1.35% at $70.77 per barrel.
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Global stocks are falling as gold retreats from record highs amidst concerns over the US election. Stay updated with the latest market
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