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Market Review

US:

On Tuesday, U.S. stocks rallied as voters headed to the polls on the last day of the presidential election and as more data piled up showing the economy remains solid.

Asia:

Stock markets in Asia including that in Japan and South Korea climbed in early trade, in line with a US stock rally overnight.

India:

Indian equity indices rebounded on Tuesday, driven by investor interest in undervalued financial stocks ahead of the U.S. election. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global Economy:

In a surprising turn of events, the American Petroleum Institute (API) reported a significant increase in the inventory levels of US crude oil, gasoline, and distillates stocks. The actual number came in at 3.132 mn barrels, surpassing the forecasted increase of 1.800 mn barrels. This unexpected rise in crude inventories implies a weaker demand, painting a bearish picture for crude prices.

The United States' trade balance has taken a further hit, with the latest data revealing a deeper deficit than anticipated. The actual figure for the trade balance, which measures the difference in value between imported and exported goods and services, stands at -$84.4 bn. This figure not only overshadows the forecasted deficit of -$83.8 bn, but it also signifies a considerable increase compared to the previous reading of - $70.8 bn. The larger deficit implies that the U.S. imported more goods and services than it exported over the reported period.

Commodities:

Oil prices fell on Wednesday as early poll results in the U.S. election showed Democrat Kamala Harris and Republican Donald Trump locked in a tight race for the presidency.

Gold prices were muted on Wednesday, as investors held back from taking big positions until the U.S. election's outcome was known and shifted focus to the Federal Reserve's upcoming meeting.

Currency:

The Japanese Yen stumbles against its American counterpart in reaction to the incoming US election results, triggering a sharp intraday rally.

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