Today's Major Financial Events: All Eyes on the US Election!

As the United States readies for its pivotal Presidential Election Day, the global market is poised for significant movements, with investors holding their breath for a clear direction amid the political drama. This pivotal event overshadows other key economic indicators and central bank decisions scheduled for the week.

Key Highlights:

15:00 GMT / 10:00 ET - US October ISM Services PMI Release:

The ISM Services PMI, a crucial gauge of economic activity within the services sector, is anticipated to show a reading of 53.8, down from last month's 54.9. Over the past couple of years, this index has lacked clarity, maintaining a range without decisive signals. However, recent quarters suggest a resurgence in the services sector, driven by stronger demand indicated by the S&P Global Services PMI. Data shows that new order inflows have surged to their highest level in nearly a year and a half, reflecting a robust services economy.

Yet, despite the encouraging signs, businesses exhibit caution regarding hiring amid looming uncertainties tied to the upcoming Presidential Election, resulting in a third consecutive month of modest payroll reductions. The overall sentiment appears to hinge heavily on the electoral outcome.

21:30 GMT / 16:30 ET - New Zealand Q3 Labour Market Report:

Meanwhile, eyes will also turn to New Zealand’s Labour Market report, forecasted to reveal a contraction of -0.5% in Q3, after a growth of 0.4% in Q2. The unemployment rate is expected to spike to 5.0%, up from the previous 4.6%. Additionally, the Labour Cost Index year-over-year is projected to be at 3.4%, slightly down from 3.6% previously.

This announcement comes on the heels of the Reserve Bank of New Zealand's recent decision to cut interest rates by 50 basis points. With expectations of another rate cut looming, the market is currently pricing in a 22% likelihood of a further 75 basis point reduction in the near future, alongside predictions of four additional 25 basis point cuts by 2025.

Central Bank Developments:

The week is filled with significant speeches and discussions from central bank officials globally, which could further influence market sentiment and trading strategies.

As we navigate through this crucial election day and related economic disclosures, the atmosphere remains charged with unpredictability. Investors should brace themselves for potential volatility as the political landscape in the U.S. unfolds. Will the election results turn the tide for the markets? Stay tuned to find out!