Nifty Recovers, Asian Markets bullish ahead of US Election

The Asian markets were seen advancing this morning (20th October 2016). All major indices like Hang Seng, Nikkei 225, Mumbai Sensex, Taiwan TSEC 50 Index etc. are in the green zone.

The Green Tour of Nifty

Indian market showed signs of recovery since Tuesday (18th October 2016) after the Index breached the psychological barrier of 8600 on Monday (17th October 2016). The last two days saw a forward march by both Nifty and Sensex, thereby, dismissing all the anticipations of a lasting market crash. At the moment, Nifty share price is trading at 8,707.15, up by 0.48 per cent or 41.90 points.

The Latest Buzz

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.25 per cent. Japan’s Nikkei extended gains to 0.9 per cent. China’s CSI 300 increased 0.2 per cent, and Hong Kong’s Hang Seng index climbed 0.6 per cent.

The U.S. FrontYesterday saw the final debate between the Republican presidential candidate Donald Trump and Democrat Hillary Clinton, which started at 01:00 GMT. Trump is trying to reverse the momentum in an election that polls show is drifting away from him. Trump has been accused of misbehaving with several women in the recent times and these have turned a lot of voters against him, sources say.

According to a certain market analyst, one of the six topics is the US economy, and any clarification of policy in this area might influence trading. Secondly, a clear win for either candidate is important. Markets are likely to buy Clinton and sell Trump.

The Mexican peso witnessed took a dip against the dollar on Thursday during the debate, slightly shrinking this week’s gains. The U.S. dollar rose 0.2 per cent against 18.548 peso on Thursday, but remains down 2.4 per cent this week. With Trump’s criticism of the migration of Mexicans and trade putting the U.S’s southern neighbour will be at a disadvantage if he wins and a stronger Mexican peso reflects the market perceptions of a lower chance of a Trump win.

U.S MarketOvernight, S&P 500 index and Dow Jones Industrial Average closed up 0.2 per cent, after Morgan Stanley registered a higher-than-expected quarterly profit to round out a string of solid results from the big US banks. With 70 companies in the S&P 500 having reported earnings through Wednesday morning, 80 per cent have already topped earnings expectations. The 3rd quarter earnings are now expected to go up by 0.5 per cent, according to Thomson Reuters I/B/E/S, which would be the first quarter of growth in five.

All eyes will be on the result of the election that is scheduled on 8th November 2016, Tuesday. Markets are showing mixed reactions and it will be interesting to watch its final reactions on the day of the election and the result date. As for today, the world is waiting for the result of the ECB meeting.

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