Pre-Market Report – Tuesday 5 November: US markets slip | RBA and Melbourne Cup

Wall Street closed in the red overnight following a choppy day of trade as polls continue to show a tight race in the US presidential election. The Dow Jones traded lower all session, down 258 points (-0.61%). Down 405 points at worst. S&P 500 lost 0.28% as utilities and healthcare stocks dragged while energy stocks outperformed buoyed by a near 3% rise in crude oil prices. The NASDAQ fell 0.33% while small caps Russell 2000 rose 0.40% supported by falling bond yields. US 10Y yield fell 8.1bps after initially dropping over 10bps in volatile trade, and the 2Y yield dipped 4.2bps. Probability for a 25bps rate cut this week sitting at 98% according to CME FedWatch tool.

ASX to fall. SPI Futures off 34 points (-0.42%).

COMMODITIES

• Oil jumps nearly 3% after OPEC+ delays output hike, US election in focus.
• Weaker dollar propels copper to two-week peak.
• Gold edges up as US election jitters, Fed policy meeting loom.
• OPEC chief says there is too much pessimism around oil demand.
• OPEC oil output rises in October as Libyan supply rebounds, survey finds.

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