US voters head to the polls today in the long-awaited Presidential Election. Traders appear to be in a positive mood so far. US index futures are up 0.1%-0.3%, clawing back some of yesterday’s US index losses of 0.3%-0.6%. The US 10-year treasury note yield is holding steady near 4.30%.
The US Dollar is giving back some of its recent gains trading 0.1%-0.2% down against majors like the Loonie, Pound and Euro, as well as Gold, which is still hanging around $2,750/oz. Commodities are climbing with US Crude Oil up 0.6% and Copper up 1.1%.
Tonight, investors will likely be looking to the results for answers to three questions 1) Who will be elected the next President? 2) Which parties gain control of the House and Senate? and 3) Will this be a clear decisive win, or could finding out who the winner is drag on for weeks or months, creating uncertainty?
In economic news, the Reserve Bank of Australia held its benchmark rate at 4.35% as was generally expected. The Fed and the Bank of England are both expected to announced 0.25% interest rate cuts on Thursday. Service PMI reports for the UK and China came in above 50 and above expectations, both positive signs. US ISM Services PMI is due mid-morning (street 53.8).
It’s a quieter day for earnings reports stateside. Dupont beat expectations ($1.18 vs street $1.03). In Canada, Sun Life ($1.76 vs street $1.70) and Thomson Reuters* ($1.11 vs street $1.06) have exceeded expectations.
*Shares of Thomson Reuters are held in portfolios managed by SIA Wealth Management.