Stock Market

Pre-opening: Market may be indecisive as investors brace for US elections

Chillicious Bureau

The Indian market may stay indecisive on weak global cues. Investors are bracing for a potentially pivotal US presidential debate by shunning stocks while favouring safe haven bonds and the yen.

Uncertainty gripped Asian markets on Tuesday, MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.3 percent in early trade, while South Korea fell 0.6 percent. Japan’s Nikkei dropped 1 percent as a higher yen threatened exporter sales and profits.

The debate between Democrat Hillary Clinton and Republican Donald Trump has started and could have a big impact with the race seemingly so close.Markets have tended to see Clinton as the candidate of the status quo, while few are sure what a Trump presidency might mean for US foreign policy, trade and the domestic economy.

Wall Street fell on Monday as Deutsche Bank weighed on financials and investors hunkered down for the first debate between US presidential candidates Hillary Clinton and Donald Trump.

The S&P financial index fell 1.5 percent, with JPMorgan’s 2.19 percent decline and Bank of America Corp’s 2.77 percent slide weighing most. The S&P 500 bank index dropped 2.24 percent, its steepest drop since July 5 in the wake of the Brexit vote.

The Dow Jones industrial average dropped 0.91 percent to end at 18,094.83 points and the S&P 500 lost 0.86 percent to 2,146.1.

Back home, the 30-share BSE Sensex was down 373.94 points or 1.30 percent at 28294.28, continuing downtrend for the second consecutive session. The 50-share NSE hit an intraday low of 8715, before closing down 108.50 points or 1.23 percent at 8723.05.

Crude futures slipped in Asian trade as investors took profits after prices climbed more than 3 percent in the previous session.

The dollar was also weighing on prices after rising against a basket of currencies, while a Reuters poll showed a build in U.S. crude stockpiles last week.

Major oil producers are gathering in Algeria for a three-day meeting that could see moves to cut or freeze oil output in an effort to support oil prices. The Organization of the Petroleum Exporting Countries and other oil producers led by Russia are meeting informally on the sidelines of the International Energy Forum in Algeria from Sept. 26-28.