Markets volatile on US presidential election results

The latest in finance news today sees multiple markets volatile following the initial US presidential election results.

Last night’s overseas trading sessions saw multiple indices and futures move higher and lower simultaneously. Fortunately, they are presenting a green flag for the ASX this morning, although the same can’t be said for other markets.

The volatile session saw two major markets move higher overnight as investor confidence began to return to the markets. Although the new US President is not yet official, the initial results seem to have brought a level of positivity with them. Other markets, such as commodities, did not fare so well.

US markets – INX, IXIC & DJI

Finance news in the United States paints a mixed picture.

The S&P 500 Index (INDEXSP: .INX) opened 1.15% higher and rose as much as 3.9% in intraday trade, before retracing a little toward the end of the session. The overall rise during the day’s session stood at 1.2%, or around 42 points. 

The NASDAQ Composite Index (INDEXNASDAQ: .IXIC) also opened higher at around 1.5%, however spent the session falling. The result was a lower close, making a loss of 1.34% for the day. Initial optimism seemed to turn late in the session.

Lastly, the Dow Jones Industrial Average (INDEXDJX: .DJI) behaved a little differently. This particular index performed very well in the last day of trade last week, rising as much as 5.3% in a single session. Last night was a different story however, with the DJI falling around 1% during trade.

Australian market – ASX

Locally in finance news, we could see a rise in the market this morning, following the positive futures session last night.

While the S&P/ASX 200 Index (ASX: XJO) closed at 6,298 points yesterday in Monday’s trade, futures indicate a higher open today. Contracts such as the Australian 200 AUD contract (OANDA: AU200AUD) rose as much as 5.5% points in intraday trade. The futures settled a little bit toward closing bell, however still resulted in a 3.77% trading day.

Overall, ASX 200 futures were up more than 230 points. This is the largest daily gain on ASX 200 futures since April this year and is a very positive sign for our local market. Although not an exact science, futures leading the open of the ASX can be an indication that we could see a rise on open today.

Cryptocurrency and commodity markets

In other finance news, cryptocurrency and commodity markets have not fared as well as the stock markets.

Bitcoin (BTC) and Ethereum (ETH) fell almost 1% and 1.8%, respectively. These 2 digital currencies are largest in value. Bitcoin holds a market capitalisation of US$284 billion and Ethereum holds US$50 billion. 

In traditional commodities, Gold (XAU) and Silver (XAG) fell heavily during the session. Gold fell 4.5% and Silver is down as much as 6% in the single session. 

Finance news takeaway

The US presidential election has been the race that has all but stopped the world. As results now look to favour a Democratic win, the financial markets have begun to react. Although the election process is not yet officially over, it seems some markets have already picked a direction to run in. 

More reading

• The 5 best-performing ASX 200 shares so far this year
• ASX 200 hits 8-month high. Here’s why we could go higher from here
• ASX 200 to surge higher after Pfizer COVID-19 vaccine success
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 jumps 1.75% on Monday

Motley Fool contributor glennleese has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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