Global Markets Await U.S. Election and Federal Reserve Decision

The dollar weakened and stocks fluctuated as markets awaited the U.S. presidential election and a Federal Reserve rate cut. Kamala Harris and Donald Trump are closely contested in polls. Investors anticipate key monetary policy decisions from major banks. European and Asian markets showed mixed results amid economic uncertainty.

On Monday, the dollar experienced a decline while stocks displayed volatility as investors remain anxious about the impending U.S. presidential election and an anticipated rate cut by the Federal Reserve later this week. The current polls show Democratic candidate Kamala Harris and Republican candidate Donald Trump neck and neck, leaving the election outcome uncertain.

Trump's financial policies concerning immigration, tax, and trade could drive inflation and bond yields up, in contrast to Harris, who is perceived as a continuity candidate. The dollar index fell by 0.3% against a basket of currencies, while the dollar dropped by 0.6% against the euro and yen, and by 0.5% against the yuan due to Harris's rising popularity in polls.

European stocks remained static, with modest gains noted only in the British market. Meanwhile, Wall Street displayed slight inclines with the Nasdaq and S&P 500 futures seeing minor elevations. Analysts predict that the outcomes of these events will shape global economic policies and geopolitical strategies for years ahead.

(With inputs from agencies.)