The dollar is likely to gain the most if there were a Republican sweep in the U.S. elections, and it would rise by less if Trump won the presidency but Congress were divided, Goldman Sachs said, adding that it would likely weaken if Harris won.
U.S. fixed income could outperform in 2025, as the Federal Reserve cuts rates, the economy weakens and inflation declines according to M&G Investments.
Gold futures rose with investors seeking safe-havens, as Israel-Iran tensions continue to boil and as the direction of U.S. economics and politics remain uncertain, analysts said.
The Hang Seng closed 0.1% higher with the key themes including lowered expectations of aggressive Fed easing after comments from some officials, and a tilt toward pricing in a potential second Trump presidency, Saxo APAC said.
The U.S. Energy Information Administration in its latest Short Term Energy Outlook estimated that national gasoline prices will average $3.20 a gallon in 2025, down from $3.30 this year and $3.50 in 2023.
U.S. natural gas futures clawed back some of last weekβs losses while participants remain anxious about demand heading toward the winter heating season.
Plain-vanilla Treasury bonds are now pricey, but there are corners of fixed-income market where investors may be able to get a bit more yield and even capital appreciation.
Municipal bonds should benefit from Fed rate cuts and offer compelling value as increased supply has caused their prices to cheapen, Principal Asset Management said.
Front-month gold futures closed at a record-high, rising 0.4% to $2,723.10 an ounce, as open interest in precious metals jumped 9% in the week ended Oct. 18.
Oil extended gains after Israeli strikes on Lebanon. Prices were are also supported by Saudi Aramcoβs CEO reportedly saying he is fairly bullish on China demand in light of stepped-up policy measures.