Markets cautious ahead of US elections, Fed's rate meeting

World shares were mixed on Tuesday, with major benchmarks in Asia gaining more than 1 percent, as investors awaited the outcome of the US presidential election and other potentially market-rattling events this week.

This week brings various potential flashpoints, among them election day in the United States.

But the results may not be known for some time as officials count all the votes, and the uncertainty could roil markets.

Adding to the potential for volatility, the Federal Reserve will also be meeting on interest rates later this week. The widespread expectation is for it to cut its main interest rate for a second straight time.

The futures for the S&P 500 and for the Dow Jones Industrial Average were 0.1 percent higher. In early European trading, took down positions.

Share prices surged on Chinese markets as investors anticipated moves by Beijing to boost the world’s second-largest economy during a meeting of the Standing Committee of China’s National People’s Congress.

Officials are expected to endorse major spending initiatives to boost economic growth amid troubles for the country’s real estate industry.

The hope that’s propelled US stock indexes to records recently is that the US economy can remain resilient and avoid a long-feared recession, in part because of the coming cuts to rates expected from the Fed.

The broad US stock market has historically risen regardless of which party wins the White House.

US crude gains ground

In 2020, US stocks climbed immediately after that election day and kept going even after former President Donald Trump refused to concede and challenged the results, creating plenty of uncertainty.

A large part of that rally was due to excitement about the potential for a vaccine for Covid-19, which had just shut down the global economy.

A Trump victory would be less of a surprise to markets this time around than in 2016, when Treasury yields soared on expectations for tax cuts that could further inflate the nation’s debt or fuel a stronger US economy.

In the oil market early Tuesday, the price for a barrel of US crude gained 27 cents to $71.74. On Monday, it rose 2.8 percent after Saudi Arabia and other oil producers said they would delay plans to increase the amount of crude they produced.

Brent crude, the international standard, advanced 23 cents to $75.31 per barrel. It rose 2.7 percent on Monday. The price of Brent is still down for the year so far, in part because of worries about how much demand will come from China given its economic challenges.

In currency dealings, the dollar rose to 152.36 Japanese yen from 152.10 yen. The euro climbed to $1.0886 from $1.0880.