Stocks Headed Mostly Higher Ahead of US Midterm Elections

Stocks Headed Mostly Higher Ahead of US Midterm Elections

A person wearing a protective mask walks past an electronic stock exchange displaying Japan's Nikkei and New York Dow indices at a securities firm on Monday, November 7, 2022 in Tokyo.  Asian stocks were mostly higher on Monday as investors weighed uncertainties such as the US mid-term elections and potential moves by China to ease coronavirus restrictions.  (AP Photo/Eugene Hoshiko)

A person wearing a protective mask walks past an electronic stock exchange displaying Japan’s Nikkei and New York Dow indices at a securities firm on Monday, November 7, 2022 in Tokyo. Asian stocks were mostly higher on Monday as investors weighed uncertainties such as the US mid-term elections and potential moves by China to ease coronavirus restrictions. (AP Photo/Eugene Hoshiko)

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Stocks are opening mostly higher on Wall Street as the US midterm election campaign will determine which party controls Congress. The S&P 500 was clinging to a 0.1% gain early on. Tech stocks underperformed the market, sending the Nasdaq slightly into the red. Apple fell after warning customers they will have to wait longer to get their latest iPhones after antivirus restrictions were imposed on a contractor’s factory in China. Facebook’s parent company rose after the Wall Street Journal reported that the company plans to make a big round of layoffs this week.

THIS IS A LAST MINUTE UPDATE. The previous AP story follows below.

Wall Street futures advanced before the bell on the last full day of campaigning ahead of Tuesday’s US midterm elections.

Dow Jones industrial futures were up 0.5% and S&P 500 futures were up 0.4%.

Elections on Tuesday will decide control of Congress and key governorships. History suggests the ruling party may suffer losses in the midterms, and decades-high inflation has become a major problem for Democrats.

Apple plunged into pre-market trading after warning customers they will have to wait longer to get their latest iPhone models, the iPhone 14 Pro and iPhone 14 Pro Max, after antivirus restrictions were imposed at the factory. from a contractor in central China.

Speculation late last week about a possible relaxation of China’s zero COVID strategy has had a huge impact on the markets. On Monday, Hong Kong’s Hang Seng Index gained 2.7% to 16,595.91 and the Shanghai Composite rose 0.2% to 3,077.85.

There has been no official confirmation in China of a major change.

“Over the weekend, Beijing has dashed hopes that China’s reopening is on the horizon, by reaffirming zero COVID policies. And this could prompt new caution,” Tan Boon Heng of Mizuho Bank in Singapore said in a report.

Also in China, the government reported that its trade contracted in October as global demand weakened and anti-virus controls hit domestic consumer spending. Exports fell 0.3% from a year earlier, down from 5.7% growth in September, the customs agency said on Monday. Imports fell 0.7%, compared to expansion of 0.3% in the previous month.

Economists have been forecasting that trade in the world’s second-largest economy will slow as global demand cools following interest rate hikes by the Federal Reserve and other central banks to curb rising interest rates. inflation.

Japan’s benchmark Nikkei 225 index jumped 1.2% to finish at 27,527.64. Australia’s S&P/ASX 200 gained 0.6% to 6,933.70. South Korea’s Kospi gained almost 1.0% to 2,371.79.

Stocks rose in Taiwan and fell in India.

In Europe by midday, Germany’s DAX rose 0.9%, while France’s CAC 40 rose 0.2% and Britain’s FTSE 100 rose 0.2% and fell.

In energy trading, benchmark US crude fell 94 cents to $91.67 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell 83 cents to $97.74 a barrel.

In currency trading, the US dollar fell to 146.59 Japanese yen from 146.92 yen. The euro rose to 99.80 cents from 99.60 cents.

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Kageyama reported from Tokyo; Ott reported from Washington.

This story was originally published November 6, 2022 8:12 PM.

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