The futures market anticipates an upward opening on the European stock market as well as on Wall Street, although with slight increases in the main market benchmarks. This Tuesday, November 5, investors are focusing their attention on the presidential elections held in the United States and where the citizens of the country are called to choose your next leader. With investigations that are progressing practically a draw between Kamala Harris and Donald TrumpThe election result will overlap with the meeting of the US Federal Reserve which will take place this Thursday.
But this Tuesday, the latest macroeconomic data known in China will also be cited. The Asian stock market was carried away by the increases after the publication of the evolution of the service sector in Chinawhich experienced its fastest growth since July. Likewise, the country’s authorities are reviewing their proposal which aims to reduce the financial burden on local administration in order to support the economy as a whole. With this data, the The continental Csi 300 index increases by almost 1.9% while the Japanese Nikkei advances 1.45%.
With investors’ attention on the US elections, the ibex 35 combine several sessions stuck below 12,000 points and without crossing this technical reference. The Spanish selective has been consolidating its positions laterally for twenty-seven sessions between the support of 11,560/11,600 points and the resistance zone of 12,000 wholes. “There will be no change in the bullish situation of the Spanish selective as long as it does not lose this support of 11,560/11,600 points, which is the yellow line or level which must be monitored in the short term”, commented the technical advisor of eco-retailerJoan Cabrero. Thus, from the point of view of technical analysis, the Ibex 35 is in the middle of a lateral phase that could be described as no man’s land where neither bears nor bulls are in control.
“The transfer of the rank of 11,560/11,600 point support would be anything but bullish for Spanish stocks, therefore opening the door to a probable greater consolidation which could target, in the worst case, 10,900/11,000 points”, according to the investor portal expert. elEconomista.es. However, there would be intermediate support of around 11,140 points, which are the September lows, and which could stop the fall before seeing these 11,000 points. To buy the Spanish stock market, the Ecotrader advisor indicates this area between 11,000 and 11,138 points to place buy orders. For more aggressive options this could be done sooner with stop protection at 11,560/11,600 points.
The US dollar has also been conditioned for the election campaign. Although the Federal Reserve’s monetary policies have greater implications for the currency, the truth is that the proposals of Democratic candidate Kamala Harris and those of Republican Donald Trump have different implications for the currency most used by the market. The dollar regained ground against the next ten largest currencies on the market. And since the lows observed in September, the dollar has led the basket of major currencies by 3.3% and is at the an increase of 1% to return to the highest levels of the yearon average against currencies like the euro, pound sterling, Swiss franc or Japanese yen.
Where we see the biggest difference is in the crossing with the Japanese yen. The Japanese currency is one of the assets most affected by the US elections. A priori, a victory for Kamala Harris would favor the yen if the American Federal Reserve maintains the road map started under the presidency of Joe Biden. On the other hand, a Republican victory could be more focused on supporting the U.S. economy with tariffs on China, among other measures, which could make it difficult for the market to lower interest rates , according to Bloomberg. Since the highs that the yen reached this year, where a variation of 140 yen per dollar was noted, the Japanese currency has fallen more than 7.7% to its current levels (152.3 yen per dollar ).
