Currencies jumpy, stocks stable with all eyes on US election
Dollar and bonds set to react to US vote
China blue chips jump 2% on stimulus expectations
USD/CNH implied volatility near record high
Recasts, updates prices at 0845 GMT
By Lawrence White
LONDON, Nov 5 (Reuters) -Stocks were steady on Tuesday but implied volatility ratcheted up in currency markets in an early indication of the market frenzy to come, as the world awaits the outcome of a knife-edge U.S. election.
Overnight implied volatility options for euro/dollar spiked to the highest since November 2016, as did those for the dollar-Mexican peso pair MXNONO=,in recognition that the latter could be hard hit by protectionist policies if Republican Donald Trump defeats Democrat candidate Kamala Harris.
Europe's benchmark STOXX index edged down 0.2% while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched 0.7% higher, as stock markets held their breath ahead of Wednesday's open.
Currencies, which unlike shares trade around the clock, saw more action albeit still offering only scattered and contradictory indications of which candidate investors were betting on.
The dollar, which had eased as traders made final tweaks to positions, bought 152.46 yen JPY=EBS and changed hands at $1.0879 per euro EUR=EBS.
"They've priced what they think is price-able and that's that," said Westpac strategist Imre Speizer, adding that a clear win for Trump would lift the dollar, while a win for Harris would push it a little lower.
Bitcoin BTC= added 2.7% to about $68,884, with Trump viewed by analysts as enacting more favourable policies for cryptocurrencies than Harris.
Election day ends an acrimonious campaign jolted by assassination attempts on Trump and the withdrawal of President Joe Biden in favour of Harris, with polls showing the candidates virtually tied.
Markets are on edge about how Trump's protectionist trade policies in particular could stoke inflation and hit exports in the world's biggest consumer market with bonds and the dollar expected to move on the outcome of the election.
"Ultimately the U.S. election comes down to this - whether the U.S. electorate wants to vote for economic policy continuity, institutional stability and liberal democracy (Harris) or radical trade policy, a further retreat for globalization and strongman democracy (Trump)," J.P. Morgan analysts said in a note. "In short, a vote for stability or change."
BRACED
China is seen on the front line of tariff risk and the currency in particular is trading on tenterhooks with implied volatility against the dollar CNHSWO= around record highs.
The yuan CNY=CFXS hovered at 7.1083 per dollar, while Chinese stock markets surged to almost one-month highs as investors expect a meeting of top policymakers in Beijing this week to approve local government debt refinancing and spending.
China's blue chip CSI300 .CSI300 jumped 2.5% and Hong Kong's Hang Seng .HSI rose 1.4%. .SS
The Australian dollar barely reacted after the central bank held rates, as expected, with all eyes on the election and the Aussie AUD=D3 was last marginally firmer at $0.6614.AUD/
"Simply, if Harris wins, we like selling dollar/yen and buying AUDUSD," said a currency strategists at Citi. "If Trump wins, we like buying USD against EUR, SEK, and NOK."
Treasury markets, which have priced in a U.S. interest rate cut for Thursday, held their ground in early European trading with 10-year U.S. yields US10YT=RR at 4.32%.
Euro zone bond yields edged up, with Germany's 10-year bond yield DE10YT=RR climbing nearly 2 basis points to 2.41%, a little below last week's three-month high of 2.447%.
Oil held sharp overnight gains on delays to producers' plans for increased output, leaving benchmark Brent crude futures LCOc1 at $75.24 a barrel after a 3% rise on Monday. O/R
When U.S. election results roll in after midnight GMT the focus will be on the battleground states of Georgia, North Carolina, Pennsylvania, Michigan, Arizona, Wisconsin and Nevada.
A winner may not be known for days and Trump has signalled that he will attempt to fight any defeat, as he did in 2020.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Reporting by Lawrence White in London and Tom Westbrook in Singapore, Editing by Shri Navaratnam and Christina Fincher
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إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
