Global Forex and Fixed Income Roundup: Market Talk

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0902 GMT - There may be a silver lining for Asia-Pacific markets despite the Democratic sweep of both chambers of Congress potentially taking some shine off the artificial-intelligence boom, Moody's Analytics economists say in a note. Democratic control of both the Senate and the House of Representatives could cool one of the hottest parts of the U.S. economy, but that might mean a modest boost to investments across Asia. "Tighter U.S. regulation of AI might push some investment toward other regions, and Asia sits first in line," they write. This comes as investors have grown more concerned about the financing structures supporting AI ventures, the viability of associated business models and equity valuations ahead of potential public offerings, the economists note.(amanda.lee@wsj.com)

0850 GMT - London's miners open higher after gold prices rise on a softer dollar and falling Treasury yields. The rise follows the U.S. midterm election results, which boosted demand for safe-haven assets. In early European trading, gold futures in New York rise 2.6% to $4,041.50 a troy ounce after retreating below $4,000 last week. Silver futures gain 4.15% to $51.82 an ounce. Precious metal miner Hochschild Mining rises 4.2% while peers Fresnillo and Endeavour both gain around 3.5%. Anglo American is 2.7% higher while copper miner Antofagasta is up 2.6%. (adam.whittaker@wsj.com)

0828 GMT - Eurozone government bond yields decline, moving in the same direction as Treasury yields in response to a Democratic sweep in U.S. midterm elections. "Bond markets are better supported after the Democratic sweep," Commerzbank's Hauke Siemssen says in a note. Attention is also on the flash estimate October eurozone inflation data at 1000 GMT. Analysts in The Wall Street Journal's poll forecast a rise in the headline print to 3.9% from 3.8% in September. The 10-year German Bund yield falls 0.5 basis point to 3.307%, according to Tradeweb. (emese.bartha@wsj.com)

0825 GMT - A blue wave in the U.S. won't dramatically alter the trajectory of stocks exposed to artificial intelligence despite concerns that tech could be under threat from the Democrats, Kathleen Brooks, research director at XTB, writes in a note. "AI powerhouses like Nvidia have reportedly hired Democrat political advisors to boost their future influence in Washington. Just as voters are fickle, so are AI companies," she says. Brooks notes that election results have had a mild impact on markets so far and that semiconductor stocks, the backbone of the AI trade, could brush off concerns about AI regulation and move higher after Tuesday's rally. (mauro.orru@wsj.com)

0826 GMT - Yields on U.K. government bonds, or gilts, decline, tracking their U.S. equivalents following the U.S. midterm elections where Democrats gained control of the Senate and the House of Representatives. Markets expect that the Democrats' win could reduce prospects of further tax cuts and deficit-widening measures, Tickmill Group's Patrick Munnelly says in a note. Ten-year gilt yields fall 1.5 basis points to last trade at 5.230%, Tradeweb data show. Ten-year U.S. Treasury yields decline 2.3bps to 4.927%. (miriam.mukuru@wsj.com)

0815 GMT - Thai economic growth likely accelerated in 3Q, thanks to stronger technology exports and investments, UOB economists say in a note. Citing the Bank of Thailand, they note that the country's merchandise exports on a balance-of-payments basis rose 23.6% on year in 3Q, up from 2Q's 17.3% increase. Data-center equipment is also driving a sharp increase in investments, they say. UOB estimates 3Q GDP growth for Thailand at 3.0% on year, and projects the economy to swing back to expansion on a quarter-on-quarter basis. The Thai economy expanded 1.9% on year in 2Q, but contracted 0.2% sequentially.(amanda.lee@wsj.com)

0806 GMT - Saudi Arabia's fall in gross domestic product is entirely attributable to lower oil output from disrupted production, according to Citi Research analysts. The kingdom's GDP shrank 3.8% on year in the third quarter, weighed down by a 20.4% decline in oil activities. "In annual terms, the oil sector explains the whole of the contraction, more than offsetting a positive contribution from the non-oil economy," the analysts write. "Elevated prices have cushioned the effect on export receipts and fiscal revenue, but real output measures volumes and on that basis the sector is still operating well below capacity." Citi adds this shows how much production relies on export logistics rather than OPEC+ allocations. (joseph.wilkins@wsj.com)

0803 GMT - A divided U.S. government can support Treasurys by limiting further fiscal expansion, Vontobel's Andrew Jackson says in a note as Republicans lost their majority in both chambers. "But blocking new spending is not the same as reducing the existing deficit," the head of investments says. Persistent deficits and heavy Treasury issuance could therefore limit how far long-term yields fall, even with a stronger congressional check on the administration, he says. Inflation and Federal Reserve policy are likely to matter more for bonds than the election results, while any renewed rise in energy prices could complicate the outlook, Jackson says. (emese.bartha@wsj.com)

0749 GMT - The big win for the Democrats in midterm elections presents contrasting reflections on the direction the party may take ahead, Commerzbank's Christoph Balz says in a note. The left wing of the party, including the Democratic Socialists of America, likely feel vindicated as a number of its representatives were elected. "On the other hand, moderate Democrats achieved spectacular successes on what is typically Republican terrain," he says. In some states, such as Texas, Ohio and Georgia, where data-center expansion is being promoted, Republican governors were voted out of office. But an argument against a clear shift to the left comes as proposals for a wealth tax for billionaires in California looks set to be rejected, he says. (edward.frankl@wsj.com)

0747 GMT - After the Democrats' sweeping wins in midterm elections, President Trump will probably rely largely on executive orders in the future, focusing on areas such as foreign policy where the president has great leeway, Commerzbank's Christoph Balz says. That means tariffs are likely to be retained, and Trump's more intensive foreign policy activities could become unpleasant for Europe, he says in a note. The risk of budget conflicts remains high, perhaps ignited by Trump's financing desires for the Iran war. The federal budget is currently only funded until Dec. 11, when new measures must be agreed, risking a government shutdown similar to the one in 2025, Balz says. (edward.frankl@wsj.com)

0745 GMT - Investors should expect a much more hostile regulatory environment for cryptocurrencies under a Democratic Congress, according to Kyle Rodda at trading platform Capital.com. "Certainly, we won't see as much pro-crypto legislation pass under this Congress," he says. The bitcoin market responded in muted fashion to the Democrats' sweeping midterms victory, Rodda notes. Crypto assets are struggling for direction after being caught between prospects for falling tech stocks--often negative for bitcoin--and a weaker dollar, which tends to lend a boost. Bitcoin is 0.3% higher at $78,103. (joseph.wilkins@wsj.com)

0742 GMT - The dollar stays weaker after reaching a one-month low against a basket of currencies in Asian trade as the Democrats were firmly on course to take control of both Congress and the Senate in the U.S. midterm elections. The market reaction reflects concerns about growth if Democrats step in to curb AI-related investments rather than "generic political uncertainty," Danske Bank's Kirstine Kundby-Nielsen says in a note. However, the dollar's weakness won't last, she says. The outcome improves predictability in fiscal policy, lowers the risk of deficit-increasing policy changes, and sets guardrails for Trump's political nominations. This is positive for the dollar over the medium-term, she says. The DXY dollar index drops 0.5% to 101.484 after hitting a low of 101.245 earlier. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

November 04, 2026 04:03 ET (09:03 GMT)