Asian stocks dip as FBI says Iran, Russia are meddling in US elections

Risk sentiment weakened in Asia on reports of foreign intervention in US elections.
Major Asian indices and S&P 500 futures declined, pushing the dollar higher.

Omkar Godbole FXStreet Contributor

Asian stocks and US index futures dropped on Thursday, with American officials warning about Russia and Iran looking to interfere in US elections.

In an impromptu news conference Wednesday night, John Ratcliffe, the intelligence director, and FBI Director Chris Wray said Iran and Russia have obtained voter registration information. Officials warned that the US would impose costs on nations trying to meddle in elections due on Nov. 3.

Also, concerns that an additional US fiscal stimulus package is unlikely to become law before the election weighed over stock markets.

The S&P 500 futures fell by 0.7%, and major Asia indices like Japan's Nikkei, Australia's S&P/ASX 200 declined at least 0.7%. The Shanghai Composite index also shed more than 1%.

The risk-off tone boosted demand for the anti-risk US dollar. The dollar index, which tracks the greenback's value against majors, bounced over 0.2% to 92.80, having hit a multi-week low of 92.47 on Wednesday.

The US 10-year yield also came under pressure, falling from 0.83% to 0.80% as the benchmark bond attracted haven demand.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD shows resilience below 38.2% Fibo. near mid-0.7100s

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.

Gold retests $4,300; USD losses momentum

Gold picks up fresh upside traction and challenges the key $4,300 mark per troy ounce on Monday. The yellow metal, however, remain on the back foot on the back of marked gains in the US Dollar and rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP recover ahead of US Senate vote on CLARITY Act

Bitcoin edges higher, trading near $77,884 as of Monday, in tandem with broader gains across the cryptocurrency market. Ethereum and Ripple follow Bitcoin’s neutral-to-bullish trajectory, holding key support levels at $2,521 and $1.38, respectively.

Will the Fed deliver the hawkishness markets are pricing in?

Fed hike bets increase after PPI and CPI reports. Updated dot plot to be crucial for the dollar’s reaction. Warsh’s independence faces test amid Trump’s pressure for lower rates. For the Dollar to extend gains, Fed needs to satisfy current hawkish bets.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.