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Global Markets: Stocks little changed ahead of midterms, Fed; oil up

Reuters  |  NEW YORK 

By Rodrigo Campos

NEW YORK (Reuters) - An index of stocks on major markets were flat on Monday, following four days of a bounce-back from a 14-month low, ahead of a key vote to define the power balance in and a meeting of the U.S. monetary policy makers.

prices rose in choppy trading after five days of heavy losses as the imposed a range of punitive sanctions on Iran, aiming to curb exports by the Islamic Republic.

Stocks on Wall Street were mostly up but the Nasdaq index was pressured by sharp declines in shares of and Nikkei reported has told two assemblers to halt plans for additional production lines dedicated to the lower-cost XR.

Investors were also cautious ahead of the U.S. midterm elections. Opinion polls show a strong chance the could win control of the after two years of wielding no practical political power in Washington, with Trump's likely to hold the

"What's spooking the market is not or - what's spooking the market is the volatility of Trump," said Gregory Perdon, co-chief investment officer at "I'm not convinced if there's a change of control that would be able to temper that."

The rose 140.87 points, or 0.56 percent, to 25,411.7, the gained 8.65 points, or 0.32 percent, to 2,731.71 and the dropped 53.73 points, or 0.73 percent, to 7,303.27.

The pan-European index rose 0.08 percent and MSCI's gauge of stocks across the globe gained 0.05 percent.

Emerging market stocks lost 0.38 percent. MSCI's broadest index of shares outside closed 1.15 percent lower, while Japan's Nikkei lost 1.55 percent.

In crude markets, prices rose despite a temporary U.S. exemption granted to eight countries allowing them to continue buying Iranian U.S. officials have said the aim is eventually to stop all of Iran's

U.S. crude rose 1.01 percent to $63.78 per barrel and Brent was last at $73.79, up 1.32 percent on the day.

yields fell as traders braced for $83 billion worth of government debt supply tied to the November refunding this week and awaited the outcome of the U.S. on Tuesday.

With the Federal Reserve meeting on Wednesday and Thursday, the prospect of even tighter U.S. monetary policy after strong economic data is also on investors' minds.

Benchmark 10-year notes last rose 5/32 in price to yield 3.197 percent, from 3.214 percent late on Friday.

The 30-year bond last rose 11/32 in price to yield 3.4344 percent, from 3.454 percent late on Friday.

BREXIT HOPES BOOST STERLING

Sterling touched a two-week high against the U.S. dollar after a report that an all-UK customs deal will be written into the agreement governing Britain's withdrawal from the on hopes of a Brexit deal, before paring gains slightly.

Theresa May's office said the report was speculative, but that 95 percent of the withdrawal agreement was settled and negotiations were ongoing.

Sterling was last trading at $1.3019, up 0.38 percent on the day.

The dollar index fell 0.17 percent, with the euro up 0.14 percent to $1.1401.

Market analysts warn that an unexpected outcome at the Tuesday U.S. could undermine the greenback which has rallied more than 7 percent from April lows against its peers.

"Much of Trump's pro-growth, pro-markets agenda has arguably been enacted in the first two years of his presidency while he's had the backing of both the House and Senate," Craig Erlam, at Oanda, said.

"If the Democrats take control of the House, for example, it may inhibit his final two years which investors may not be particularly upset about given his determination to engage in a trade war with and the EU," he said.

The Japanese yen strengthened 0.01 percent versus the greenback at 113.20 per dollar.

Spot gold dropped 0.1 percent to $1,231.26 an ounce. U.S. gold futures fell 0.03 percent to $1,232.90 an ounce.

Copper lost 1.28 percent to $6,202.50 a tonne.

Three-month nickel on dropped 1.26 percent to $11,780.00 a tonne.

(Reporting by Rodrigo Campos, and in New York, Sruthi Shankar in Bengaluru and Christopher Johnson in London; Editing by Alistair Bell)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 05 2018. 22:00 IST
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