Singapore market trends Wednesday: Nail-biter US midterm elections to keep markets jittery

Singapore’s traders will likely return warily from the one-day holiday on Wednesday, with results of U.S. midterm elections expected to start trickling in throughout the session.

“U.S. midterm elections will clearly be the dominant consideration across global markets. A relative dearth of other developments makes it an even easier contest,” Derek Holt, head of capital markets economics at Scotiabank, said in a note early on Tuesday, U.S. time.

“My best guess is for a risk-off market tone to lie in the wake of the results. Early voting suggests very strong voter engagement in this election, particularly among traditional supporters of the Dems,” Holt added.

But some analysts noted that markets may not react much no matter what the outcome.

“It should be no surprise that there was limited activity in the forex market today ahead of the U.S. midterm elections,” Kathy Lien, managing director for foreign-exchange strategy at BK Asset Management, said in a note on Tuesday.

“U.S. equities also ended the day in positive territory which tells us that investors don’t think much will change after the U.S. midterm elections,” she added.

Election results can be tracked here and here.

Indexes

Japan’s Nikkei 225 opened Wednesday up 0.65 percent, while South Korea’s Kospi edged into the green by 0.01 percent in opening trade.

Singapore’s STI index ended Monday down 1.79 percent at 3060.62; the market was closed on Tuesday for a holiday. STI futures for November were at 3063 at Monday’s close, while December and January futures were at 3061 and 3063 respectively.

Hong Kong’s Hang Seng Index ended Tuesday up 0.72 percent at 26,120.961, while China’s CSI 300 was down 0.60 percent at 3243.15.

Malaysia’s KLCI ended Monday down 0.30 percent at 1708.80; the market was closed on Tuesday for a holiday.

Indonesia’s IDX Composite edged up 0.06 percent to end Tuesday at 5923.93.

The Dow Jones Industrial Average was up 0.68 percent at 25,635.01 at Tuesday’s close, the Nasdaq Composite rose 0.64 percent at 7375.964 and the S&P 500 tacked on 0.63 percent at 2755.45. Futures for the three indexes were in the red in early Asia trade.

Currencies

The U.S. dollar index was at 96.27 at 7:05 A.M. SGT, after rising as high as 96.42 on Tuesday, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 3.231 percent at 7:38 A.M. SGT, rising from as low as 3.192 percent earlier in Tuesday’s session, according to Tullett Prebon data.

The euro/dollar was at 1.440 at 8:01 A.M. SGT after trading in a 1.1390 to 1.1438 range on Tuesday, according to DZHI data.

The dollar/yen was at 113.317 at 8:01 A.M. SGT after trading in a 113.07 to 113.505 range on Tuesday, according to DZHI data.

The dollar/yuan ended Tuesday at 6.9171 after trading in a 6.9100 to 6.9284 range during the session, according to DZHI data.

The dollar/Singapore dollar was at 1.3728 at 8:02 A.M. SGT after trading in a 1.3724 to 1.3759 range on Tuesday, according to DZHI data.

The dollar/Indonesian rupiah ended Tuesday at 14,800 after trading in a 14,780 to 14,975 range during the session, off its high of 15,200 on Friday, according to DZHI data.

The dollar/Malaysian ringgit was at 4.1670 at 8:05 A.M. SGT after trading in a 4.1585 to 4.1768  range on Tuesday, according to DZHI data.

Oil

Nymex WTI crude oil futures for December were down 0.68 percent at US$61.79 a barrel at 7:33 A.M. SGT, while ICE Brent crude oil futures for January were down 1.42 percent at US$72.13 a barrel at 6:59 A.M. SGT, according to Bloomberg data.

Read more: Crude heads weaker in Asia Wednesday after API surprise build