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U.S. stocks edge higher ahead of midterms, Fed; dollar falls

Reuters  |  NEW YORK 

By Hilary Russ

NEW YORK (Reuters) - Energy and financial stocks pushed U.S. equities higher on Monday, on the eve of U.S. midterm elections to determine whether Donald Trump's retains control of the U.S. and ahead of a meeting of policy makers.

Choppy trading in left prices mixed after five days of heavy losses as the imposed a range of sanctions aimed at curbing exports by

The Trump administration's decision to re-impose sanctions on Iran's exports lifted prices for much of the day, boosting many U.S. shares. But the Nasdaq index <.IXIC> fell, pressured by slumping 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 the could win control of the after two years of wielding no practical political power in Washington, with Republicans likely to hold the

"What's spooking the market is not or Senate," said Gregory Perdon, at Arbuthnot Latham, "what's spooking the market is the volatility of Trump," which might not be tempered by any change in

The Dow Jones Industrial Average .DJI rose 190.87 points, or 0.76 percent, to 25,461.7, the .SPX gained 15.25 points, or 0.56 percent, to 2,738.31 and the .IXIC dropped 28.14 points, or 0.38 percent, to 7,328.85.

The pan-European index <.STOXX> lost 0.16 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.10 percent.

Emerging market stocks rose 2.60 percent.

fell, despite Washington's temporary exemption to eight countries allowing them to keep buying Iranian oil amid sanctions.

Brent crude futures settled at $73.17 per barrel, up 34 cents or 0.47 percent. U.S. settled at $63.10 per barrel, down 4 cents or 0.06 percent.

yields were lower as investors covered short positions ahead of midterm elections and braced for $83 billion worth of government debt supply tied to the November refunding this week.

With the meeting on Wednesday and Thursday, investors were also concerned about prospects for tighter U.S. monetary policy after strong economic data.

10-year notes last rose 3/32 in price to yield 3.2027 percent, from 3.214 percent late on Friday.

The 30-year bond last rose 11/32 in price to yield 3.4353 percent, from 3.454 percent late on Friday.

BREXIT HOPES BOOST STERLING

Sterling touched a two-week high against the U.S. dollar then pared gains to trade at $1.3048, up 0.60 percent. The British currency got a boost from a report that an all-UK customs deal will be written into an agreement governing Britain's withdrawal from the

The U.S. dollar softened against a basket of major currencies as investors, cautious ahead of the elections, took profits after three straight weeks of gains.

The dollar index <.DXY> fell 0.24 percent, with the euro up 0.25 percent to $1.1414. Analysts cited pre-election caution after the greenback has rallied more than 7.0 percent from April lows.

"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," said Craig Erlam, at

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

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 05:07 IST
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