The Fed announces its decision, oil tumbles to a 5-week low, investors flock to safe haven assets, and global stocks are broadly lower. Here are four things to know in the market on Wednesday, November 2.
1. The Federal Reserve Will Announce its Decision
The U.S. Federal Reserve will commence its two-day monetary policy meeting today, with a statement coming later in the day. The central bank is not expected to make a move, but its statement could provide insight into whether policymakers will raise rates in December.
It is unlikely that the Fed will raise rates at its current meeting this close to a presidential election.
Market players are betting on a 73.3% chance of a hike in December.
2. Oil Tumbles to 5-Week Low
Oil prices slipped to a five-week low, as investors awaited weekly stockpile data out of the U.S. and doubts of an OPEC agreement on production cuts mounted.
The American Petroleum Institute reported an increase of 9.3 million barrels last week.
The U.S. Energy Information Administration will release official stockpile data later this morning.
Analysts projected an increase of 1.013 million barrels.
U.S. crude futures were down 1.44% to $46 a barrel, while Brent was down 1.29% to $47.52.
3. Investors Flock to Safe Haven Assets
With polls showing a tightening race between Hillary Clinton and Donald Trump in the U.S. presidential election, investors fled to safe haven assets.
A Trump presidency would create many uncertainties, experts say, which greatly weighs on risk sentiment.
Investors fled to safe havens, such as the Swiss franc, the Japanese yen, gold and government bonds.
4. Global Stocks are Broadly Lower
News of the tightening U.S. presidential race weighed on markets across the world.
European markets opened lower amidst the uncertainty, while Asian markets were sharply lower. A surge in the yen weighed heavily on the Nikkei.
U.S. futures pointed to a lower opening. Dow futures were down 0.2%, Nasdaq 100 futures slipped 0.14% and S&P 500 futures eased 0.14%.
