Global Equities Rise Amid Improved Risk Appetite
US stock futures pointed to a sharply higher open, as investors view the US midterms result favourably despite the Democrats taking back control of the House. Following US congressional midterm elections, Democrats gained control of the US House of Representatives, while Republicans held their majority in the Senate. The results were broadly in line with predictions and betting markets ahead of the election.
The Federal Reserve's Federal Open Market Committee (FOMC) begins its two-day policy meeting today, with a decision due Thursday afternoon. While no change in policy is expected, investors will be looking for fresh signals from the US central bank on its plans for the rest of the year and beyond. The Fed raised borrowing costs in September for the third time this year. Solid economic growth combined with rising inflation are likely to keep it on track for another increase in December.
Oil prices are benefiting from improved risk appetite. WTI crude oil was trading 0.8% higher at $62.70, while Brent gained 1% to $72.86 per barrel. The US Energy Information Administration (EIA) will release its official weekly oil supplies report for the week ended November 2. Analysts expect the EIA to report a climb of around 2.4 million barrels in crude supplies.