Midterm election fever failed to intimidate wall street but made it happen to dollar, sending gold prices highs. Oil prices slumped. Bitcoin was in a red roller coaster.Updated time: 17 Nov, 2022, 11:58 (UTC+04:00)
Wall Street resumed gains as the expectations of a victory for the Republicans in the upcoming midterm elections rose, which might cause the Congress’s division and prepare for U.S political standoff. Dow Jones rose 1% while Nasdaq and sp500 added around 5%. Investors were also concerned about the possibility that winning Democrats could drag the market down with increasing corporate tax.
Futures were little changed, with minor 0.1-0.2 gains in sp500 futures and nasdaq futures.
Despite the dollar's tumble, oil prices slumped 3% as Covid-19 battle in China escalated and as crude futures market participants tried to limit exposures ahead of weekly U.S inventory data due on Wednesday. Brent crude was down 2.6% to $95.36 while U.S WTI lost 3.14% to $88.91 per barrel.
Resurgent safe haven demand and weaker dollar sent gold prices to one-month high. Spot gold traded above $1,700 while gold futures rose to $1,715.90. Both instruments edged up over 2% in the last session.
Dollar lost ground for the second consecutive day as markets awaited midterm election results and inflation data that might bring a slowdown in rate hikes. This pinned its index down nearly 1% to 109.73. The dollar last traded at $1.1006 per euro and bought 145.20 yen, much below its 50-day moving average against the yen for the first time in nearly three months. Aussie dropped $0.65 to $0.6496 while kiwi wavered 0.1% lower to $0.5951. Sterling held at $1.1539.
A bailout of exchange FTX from Binance caused a wild ride into the red in the crypto market. Bitcoin plummeted more than 10% and traded below $19,000 for the first time since mid September. Ethereum was even more miserable, dropping nearly 15% to $1,313 and reaching its lowest level in more than two weeks.