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Yen Drops as Japan Election Unnerves Investors: Markets Wrap

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Bloomberg


(Bloomberg) — The yen fell to its weakest level in almost three months after Japan’s ruling coalition failed to win a majority in parliament at the weekend’s election. Crude tumbled after Israeli strikes on Iran avoided oil facilities.

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The Japanese currency fell as much as 0.6% to 153.27 per dollar early Monday as political instability looms after a gamble by Prime Minister Shigeru Ishiba to call a snap election backfired. Tokyo stocks are set to come under pressure after equity futures dropped.

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The election result “opens risks for a hung parliament and so further fiscal spending,” Bob Savage, head of markets strategy and insights at BNY, wrote in a note to clients. “The markets are likely to think this means more trouble for the yen, with 155 per dollar the first target.”

Australian shares edged higher in early trading and US equity futures climbed. Hong Kong contracts were down.

Crude plunged after Iran said its oil industry was operating normally after Israel struck military targets across the country. Brent crude dropped and West Texas Intermediate fell by more than 5% in early trading before paring declines. Gold edged lower.

Chinese shares will be closely watched after profits at China’s industrial firms in September declined 27.1% from a year earlier, posing a challenge to the nation’s economy as deflationary pressures sap the strength of corporate finances.

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Trump Trades

Markets are readying for barrage of data this week including Chinese economic activity readings, Eurozone and US growth prints as well as a payrolls report to help position portfolios into year-end. Traders will also fine tune expectations of the US election after Asian and emerging market assets extended a slide last week in anticipation Donald Trump will return to the White House.

“As the elections approach and Trump trades increasingly are implemented, the US dollar may remain on the front foot while US rates remain elevated, creating a somewhat painful backdrop for emerging market assets,” Barclays Plc strategists led by Themistoklis Fiotakis wrote in a note to clients. While it may worsen in a Trump win, “there has already been some degree of election premium built into currency markets over recent weeks.”

The rally in stocks faded Friday, with the S&P 500 notching its first weekly loss in seven weeks as a gain in tech stocks failed to offset a drop in bank shares. Five of the so-called Magnificent Seven report earnings this week and are expected to post their slowest collective quarterly earnings expansion in six quarters, according to data compiled by Bloomberg Intelligence.

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Saylor’s Bitcoin custody debacle highlights growing divide in crypto community

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Saylor’s Bitcoin custody debacle highlights growing divide in crypto community


As institutional interest in Bitcoin soars, the crypto community grapples with fundamental questions about custody and control.



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Binance founder CZ sees positive shift in crypto regulation worldwide 

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Binance founder CZ sees positive shift in crypto regulation worldwide 


Developing crypto regulations, along with a political shift toward cryptocurrencies, is a “very positive direction” for the industry, according to Changpeng Zhao.



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Harris win unlikely to rock Bitcoin price, but crypto fears persist, say observers

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Harris win unlikely to rock Bitcoin price, but crypto fears persist, say observers


With the US presidential elections nearing and no clear frontrunner, uncertainty looms over what effect the victor will have on the crypto sector.



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Missing Bitcoin and lost execs: Halloween’s creepiest crypto mysteries

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Missing Bitcoin and lost execs: Halloween’s creepiest crypto mysteries


It’s Bitcoin White Paper Day, but it’s also Halloween. Here are Cointelegraph’s six crypto mysteries to share around the campfire.



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Bitget wallet on Telegram hits 6 million users 3 days after launch

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Bitget wallet on Telegram hits 6 million users 3 days after launch


Bitget Wallet’s Telegram Mini App, Bitget Wallet Lite mini, has attracted more than six million users in just three days after its soft launch.



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Bitcoin at 16: From experiment to trillion-dollar asset

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Bitcoin at 16: From experiment to trillion-dollar asset


In just 16 years, Bitcoin has grown to become the world’s 10th largest asset and the best currency for “financial freedom,” according to Tether CEO, Paolo Ardoino.



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