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Dollar slips, stocks flat ahead of neck-and-neck US election

The dollar fell and stocks struggled on Monday as investors trod thoroughly ahead of a U.S. governmental election of terrific effect for the global economy, with a U.S. Federal Reserve interest rate cut also anticipated later in the week.

In the U.S. governmental race, Democratic candidate Kamala Harris and Republican politician candidate Donald Trump stay virtually incorporated opinion surveys ahead of Tuesday's vote. It may not be clear who has won for days after voting ends.

Trump's policies on migration, tax cuts and tariffs may put upward pressure on inflation, bond yields and the dollar, analysts believe, while Harris is seen as the continuity prospect.

The dollar index, which measures the greenback against a basket of currencies, relieved 0.3% to 103.63.

The dollar moved versus a host of European and Asian currencies, losing 0.6% versus the euro to $1.090. It also found 0.6% versus the Japanese yen to 152.11 and 0.5% against China's yuan in the onshore market .

The dollar's decrease might be linked to a poll that showed Harris taking a surprise 3-point lead in Iowa, thanks largely to her appeal amongst female citizens, dealers stated.

European stocks were flat in early trading, with British shares the outlier, including 0.4%.

Wall Street was heading for slim gains, with Nasdaq futures rising 0.2% and S&P 500 futures up 0.1%.

Tomorrow will shape the direction of the world economy and geopolitics for the next four years, Deutsche Bank analysts wrote.

They warned that there remains a large degree of unpredictability around both the outcome, consisting of the very tight House (of Agents) race, and when we will understand it.

U.S. federal government bonds increased, with yields on 10-year Treasury notes falling 5.6 basis indicate 4.30%.

MSCI's broadest index of Asia-Pacific shares outside Japan increased 0.6%, recovering from its fall to a. five-week low on Friday.

RATES FOCUS

The week will likewise offer investors with worldwide monetary. policy catalysts. The most carefully seen of a multitude of rate. choices is the Fed, with decisions also due from the Bank of. England (BoE), the Reserve Bank of Australia (RBA), Riksbank and. Norges Bank.

Markets are leaning towards a 25-basis-point Fed rate cut.

Based on present information, we see no factor for (the FOMC) to. rush through rate cuts, said analysts at ANZ.

The election and uncertainty over the future financial path. also support arguments for caution in recalibrating monetary. policy.

Today's conference of China's powerful National Individuals's. Congress (NPC) standing committee is also at the top of. investors' radar.

The NPC fulfills from Nov. 4 to Nov. 8, with any more. information of a raft of stimulus procedures that were revealed. recently in focus.

Chinese blue-chip stocks gained 1.4%, with the. Shanghai Composite Index up 1.2%.

Reuters reported that at the NPC meeting China is. thinking about approving the issuance of over 10 trillion yuan. ($ 1.4 trillion) in extra debt in the next couple of years to revive. its delicate economy, a financial package which is expected to be. further bolstered if Trump wins the election.

The Bank of England, which fulfills on Thursday, is likewise. anticipated to alleviate rates by 25 bps. Its decision has actually been. complicated by a sell-off in gilts following the Labour. federal government's spending plan last week.

Sterling was added 0.5% greater to $1.297, assisted by. a weaker dollar. It fell 0.3% recently.

Oil rates increased after OPEC+ stated on Sunday it would delay a. planned December output hike by one month. Brent futures. rose 1.8% to $74.41. U.S. West Texas Intermediate (WTI) crude. included 1.9% to $70.83.

(source: Reuters)