2024-11-06 11:25

Biden-era clean energy subsidies would likely survive Reduction in offshore wind leasing likely Solar, wind energy costs have dropped sharply Oil, gas output already at record highs Nov 6 (Reuters) - Donald Trump's return to the White House will refocus the nation's energy policy onto maximizing oil and gas production and away from fighting climate change, but the Republican win in Tuesday's presidential elections is unlikely to dramatically slow the U.S. renewable energy boom. That is because a Biden-era law providing a decade of lucrative subsidies for new solar, wind and other clean energy projects would be near-impossible to repeal, thanks to support from Republican states, while other levers available to the next president would only have marginal impact, analysts say. "I don't think a Trump president can slow the transition," said Ed Hirs, Energy Fellow at the University of Houston. "This is well underway." Renewable energy sources like solar and wind are the fastest growing segments on the power grid, according to the Department of Energy, driven by federal tax credits, state renewable energy mandates, and technology advancements that have lowered their costs. President Joe Biden in 2022 signed into law the Inflation Reduction Act , opens new tab guaranteeing billions of dollars of solar and wind subsidies for another decade as part of his broader effort to decarbonize the power sector by 2035 to fight climate change. Before the election, Trump slammed the IRA as being too expensive and promised to rescind all unspent funds allocated by the law - a threat that, if accomplished, could pour cold water over the U.S. clean energy boom. But doing so would require lawmakers, including those whose states have benefited from IRA-related investments like solar panel factories, wind farms and other projects, to vote to repeal it. "The jobs and the economic benefits have been so heavy in red states, it's hard to see an administration come in that says we don't like this," said Carl Fleming, a partner at law firm McDermott Will & Emery, who advised the Biden White House on renewable energy policy. Many of Trump's allies also benefit from the IRA through their investments in clean energy technologies, Reuters has previously reported. Fleming said Trump could, however, slow things down around the margins by hindering federal agencies that deliver IRA grants and loans, or by reducing federal leasing for things like offshore wind. "You could see a new administration come in and they can very quickly begin to cut budgets or restrict budgets or restrict the freedom of agencies to do certain things that are tied to funding," he said. "But I think that's a smaller subset of the larger renewables market that's really relying on those, so I don't think it would have a shocking effect." The Biden administration has rushed to ensure it spends the majority of available grant funding under the IRA before a new president arrives, Reuters has previously reported. One way Trump could slow the transition is through executive action by changing public lands leasing, analysts said. The Biden administration had sought to expand lease auctions for offshore wind in federal waters, along with solar and wind on land. "I think you would see more preference given to fossil fuel extraction on public lands and waters," said Tony Dutzik, associate director and senior policy analyst at Frontier Group, a non-profit sustainability think tank. That could have an outsized impact on the offshore wind industry, which aims to site projects in federal waters. Most onshore solar and wind projects are located on private property, as is the vast majority of oil and gas drilling. Trump has said he intends to end the offshore wind industry "on day one," arguing it is too expensive and poses a threat to whales and seabirds, a dramatic policy reversal after his first administration supported offshore wind development. Bernstein Research said Trump is likely to enact a moratorium on new offshore wind lease sales. Meanwhile, U.S. fossil fuel production is likely to look much the same under Trump, experts said. The U.S. has already become the world's largest oil and gas producer, under the watch of Biden, thanks to a drilling boom in fields like the Permian Basin under Texas and New Mexico. Trump paved the way for the boom by slashing red tape during his term in the White House and he could expand U.S. fossil fuel production in a second term by rolling back Biden's climate initiatives, his campaign said. Trump could, for example, push for drilling in Alaska's Arctic National Wildlife Refuge. Biden blocked ANWR drilling leases, but even if Trump opens up the pristine area prized by environmentalists, it is uncertain whether companies would be willing to pump in the rugged north. "Presidents can make a lot of noise about plans for U.S. oil and gas, but ultimately it's individuals and companies responding to prices of a global commodity that make the decisions on when to drill," said Jesse Jones, head of North American Upstream at Energy Aspects. Sign up here. https://www.reuters.com/business/energy/trump-return-will-slow-not-stop-us-clean-energy-boom-2024-11-06/

2024-11-06 11:19

LONDON, Nov 6(Reuters) - The British pound was on track for its biggest one-day drop against the dollar since March 2023 as the U.S. currency soared after Donald Trump was elected president. The election result sent the dollar surging against a basket of currencies, including the pound, as Trump's expected expansionary fiscal policy and imposition of U.S. import tariffs are expected to drive inflation higher. The Republican Party also won control of the Senate and made gains in the House. A "Red Sweep" where the party controls the presidency, Senate and House would put the Republicans in a stronger position to dictate policy. "The inflationary nature of Trump policies is dollar supportive, and short-term market reactions reflect this," said Joe Tuckey, head of FX analysis at Argentex Group. Sterling was last down 1.2% against the dollar at $1.28955, its biggest one-day fall since March 2023. The dollar index , which measures the currency against six others including the pound, was up 1.6% at 104.97. It has been a busy two weeks for pound traders, starting with last week's budget, the first under the new Labour government. That budget contained huge tax rises, spending increases and higher levels of borrowing, causing a wobble in Britain's bond markets that sent yields shooting to multi-month highs. Britain's 10-year gilt yield was down 2 basis points on Wednesday after earlier touching its highest since November 2023. Attention was now turning to the monetary policy announcement from the Bank of England on Thursday, where the market expects a 25 basis point rate cut. Danske Bank FX analyst Kirstine Kundby-Nielsen expects the pound to outperform the euro, as the BoE looks set to follow a slower easing path than the European Central Bank. "You're seeing more growth outperformance in the UK and you're seeing the Bank of England being a lot more gradual in how they want to approach monetary easing," Danske Bank's Kundby-Nielsen said. "I continue to expect the pound to strengthen against the euro." The pound was last up around 0.5%, at 83.38 pence per euro . Sign up here. https://www.reuters.com/markets/currencies/sterling-slumps-trump-victory-sends-dollar-higher-2024-11-06/

2024-11-06 11:12

Tesla rises almost 15% Mexican peso drops Bitcoin roars to record Dow, S&P and Nasdaq surge to record highs Big gains in small caps, bank shares NEW YORK/LONDON, Nov 6 (Reuters) - Donald Trump's victory in the U.S. presidential election unleashed a massive rally in the dollar, drove stocks to record highs and punished bond prices as expectations of tax cuts and tariffs on imports drove optimism about economic growth while fueling worries about inflation. U.S. equity indexes soared, with the benchmark S&P 500 up 2.51% to a record high and huge gains in areas such as small-cap stocks and banks that are poised to benefit from Trump's expected lighter regulatory touch. The dollar hit its highest level in over four months. Bitcoin hit record highs and Treasuries were battered. "Everywhere you look, there's the thumbprints of these election results for markets," said Paul Christopher, head of global investment strategy at the Wells Fargo Investment Institute. Trump's pledges to raise tariffs, cut taxes and slash regulations encouraged investors to dive into a range of assets that looked likely to benefit from such policies. Markets that could suffer under tougher tariffs bore the brunt of the sell-off. The Mexican peso slumped to its lowest level in over two years while the euro was set for its largest daily drop since 2020. Currency trading was intense. CME Group (CME.O) , opens new tab said by 10 a.m. CT, online trading of the Offshore Chinese Renminbi already had hit $33 billion in notional value, an all-time high. In the same time span, the traded notional value of futures contracts on the Mexican peso was 43% above the average daily volume. Bolstering confidence in "Trump trades," Republicans won control of the U.S. Senate. Investors were still awaiting results in the House of Representatives, and Republican control would clear the path for Trump's agenda. The election could have far-reaching implications for tax and trade policy, as well as U.S. institutions, affecting assets globally. INTEREST RATES SEEN HIGHER Investors sold U.S. Treasuries, partly on the expectation that higher tariffs would inevitably filter through to consumer prices, but also because Trump's promises on spending could boost government debt levels. The benchmark 10-year Treasury yield rose as high as 4.48%, its highest level in over four months but retreated slightly. "If he's able to fully implement his agenda, it means bigger deficits, bigger tax cuts, and also, because of tariffs, higher inflation," said David Kelly, chief global strategist at JPMorgan Asset Management. "The higher inflation and the bigger deficits should push up long-term interest rates." In stocks, shares of Tesla (TSLA.O) , opens new tab, headed by Trump supporter Elon Musk, jumped 14.75%. The small-cap Russell 2000 (.RUT) , opens new tab rose nearly 6%, while the S&P 500 banks index (.SPXBK) , opens new tab jumped 10.68%. Bitcoin surged to a record high, betting on a softer line on cryptocurrency regulation. "Trump's win likely means some deregulation, including rolling back banking regulations," BlackRock Investment Institute said. Investors started trading early. Retail trading platform Robinhood Markets (HOOD.O) , opens new tab had its largest-ever overnight trading session since it introduced that option in May 2023. The company said its total volume was 11 times a typical overnight trading session, with investors flocking to securities that pundits believe are likely to benefit from a second Trump presidency, ranging from Coinbase Global (COIN.O) , opens new tab and the iShares Bitcoin Trust ETF (IBIT.O) , opens new tab to companies owned by Trump and his wealthiest fan, Elon Musk. The results meant markets gained clarity about the presidency faster than in 2020, when Joe Biden was announced the victor some four days after election night. "This is an economy that's in good shape as we go into the next Congress and the next administration, and the stock market is reflecting that with the removal of this uncertainty overhang," said Kurt Reiman, head of fixed income Americas and lead of the ElectionWatch at UBS Wealth Management. Market attention is turning to the Federal Reserve's monetary policy decision on Thursday, with Trump's victory set to potentially put the central bank on a slower and shallower path for interest-rate cuts, should the Republican's plans juice the economy. "We now expect just one Fed cut in 2025, with policy on hold until the realized inflation shock from tariffs has passed," economists at Nomura said in a note. Sign up here. https://www.reuters.com/markets/us/bets-trump-20-winners-losers-whip-up-markets-2024-11-06/

2024-11-06 11:11

Legacy automakers rise, smaller EVs drop Prison operators soar, steel stocks climb China ADRs, US renewable stocks fall Nov 6 (Reuters) - Donald Trump's U.S. presidential election victory boosted the stock market on Wednesday as investors bet on lower corporate taxes and deregulation, lifting shares of Tesla (TSLA.O) , opens new tab, banks, small-cap companies and Trump's own media company. His promise to make Tesla CEO Elon Musk head of a government efficiency commission after the billionaire backed Trump throughout his electoral campaign sparked a 15% surge in shares of the electric automaker. Wall Street's main indexes jumped to record highs, with the Dow Jones industrial average (.DJI) , opens new tab rallying almost 4% and the S&P 500 (.SPX) , opens new tab more than 2% higher. The small-cap Russell 2000 index (.RUT) , opens new tab jumped almost 6% to its highest in nearly three years. "Business animal spirits could be rekindled once again from Trump's pro-business approach, which could lead to a more robust capital expenditures and investment environment," said Jeff Schulze, market strategist at ClearBridge Investments. Trump Media & Technology Group, majority-owned by Trump, jumped 6%. The company late on Tuesday reported quarterly results that showed the Truth Social parent's revenue was just $1 million. The stock has more than tripled in value from its lows in late September, valuing Trump's stake at over $4 billion. POLICY DETAILS AWAITED Trump's Republican Party also secured the Senate and was making gains in the House of Representatives, potentially making it easier for the president to legislate his proposals and push through key appointments. Markets "have priced in a pretty strong mandate for the Republicans and are biasing toward most of the Trump trades," said Scott Chronert, U.S. equity strategist at Citi. "The market focus seems to be putting more emphasis on deregulation, tax cuts and a more business-friendly backdrop." Wall Street lenders JPMorgan Chase (JPM.N) , opens new tab, Bank of America (BAC.N) , opens new tab and Goldman Sachs (GS.N) , opens new tab jumped between 8% and 13% on prospects of looser regulations and more deals. "There is an expectation that the regulatory landscape will ease under the Trump administration" and that is helping financials' shares, said David Ellison, portfolio manager at Hennessy Funds, which holds several bank stocks. Investors will also be anxious to see how Basel III, a set of global banking regulations, will be implemented by the next administration, said Greg Hertrich, head of U.S. depository strategies at Nomura. The latest version of the proposal called for a 9% rise in banks' capital. "Whether the banks will need 9%, 6%, 4% or 0% more capital creates very different scenarios," he said. Hertrich also noted that the proposal could speed up U.S. bank mergers. Semiconductor stocks advanced, with the PHLX chip index (.SOX) , opens new tab rallying 3.1% and artificial intelligence darling Nvidia (NVDA.O) , opens new tab gaining 4% to a record high close. Trump has proposed tariffs on imported chips, particularly from Taiwan's TSMC, whose U.S.-listed shares dropped 1.3%. The S&P 500 energy index (.SPNY) , opens new tab climbed 3.5%, while U.S. renewable energy companies NextEra Energy (NEE.N) , opens new tab and First Solar (FSLR.O) , opens new tab fell 5% and 10%, respectively. Trump's campaign laid out an energy policy platform centered around maximizing U.S. fuel and power output, in part by dismantling the Biden administration's efforts to fight climate change. "I think it will be a positive administration for fossil fuel companies, with less regulation restricting production," said Ronald Temple, chief market strategist at Lazard. AUTOS, CRYPTO AND CHINA While Tesla shares surged, stocks of other electric automakers dipped as Trump had said he would consider ending a $7,500 tax credit for EV purchases. Rivian Automotive (RIVN.O) , opens new tab dropped 8% and Nikola (NKLA.O) , opens new tab slipped almost 3%. Fears of escalation in Sino-U.S. tensions pressured U.S.-listed China shares with iShares MSCI China ETF (MCHI.O) , opens new tab dropping 2.7%. Import duties, including a 10% universal tariff on imports from all foreign countries and a 60% tariff on imports from China, are a key plank of Trump's policies and likely to have the biggest global impact. Victory for Trump, who has positioned himself as pro-cryptocurrency, lifted bitcoin to a record high. Crypto-linked stocks Coinbase (COIN.O) , opens new tab, MicroStrategy (MSTR.O) , opens new tab, Riot Platforms (RIOT.O) , opens new tab, MARA Holdings (MARA.O) , opens new tab jumped. Shares of private prison operators Geo Group (GEO.N) , opens new tab and CoreCivic (CXW.N) , opens new tab hit their highest levels since 2019. Geo surged 42% and CoreCivic jumped 29% as Trump's promised crackdown on illegal immigration could boost demand for detention centers. U.S. steel makers Cleveland-Cliffs (CLF.N) , opens new tab, Steel Dynamics (STLD.O) , opens new tab and Nucor (NUE.N) , opens new tab surged, with analysts having noted in the run-up to the election that a Trump presidency may mean rising protections for the domestic steel industry. Retailers' shares fell on concerns over possible tariff proposals. Shares of Wayfair (W.N) , opens new tab dropped almost 9%, while Home Depot (HD.N) , opens new tab and Lowe's (LOW.N) , opens new tab each fell nearly 3%. For the U.S. stock market report click here For U.S. stocks on the move click here For story on the likely impact of Trump win on global economy click here. Sign up here. https://www.reuters.com/markets/us/trumps-media-business-tesla-surge-former-president-nears-second-term-2024-11-06/

2024-11-06 11:08

Nov 6 (Reuters) - As Donald Trump was projected to win the White House, according to Edison Research, the U.S. dollar and stock market are seen as winners, but a Republican presidency could weigh on bonds, emerging markets, clean energy and sustainable investing. Here's how: CURRENCIES A Trump presidency is seen strengthening the U.S. dollar, with investors expecting his policies to lead to higher inflation and growth than would have been the case under Democrat Kamala Harris. That will mean the Federal Reserve would need to keep rates high to prevent the economy from overheating, which in turn would be bullish for the dollar. At the same time, Trump's plans to impose tariffs on trade, force European allies to pay more for defense and suspicion of multilateral institutions are likely to depress growth elsewhere in the world, boosting the dollar's allure. Citi analysts expect the dollar to rally 3% after a Trump win. Analysts expect a sharp fall in the euro, possibly below the key $1 level , if tariffs and domestic tax cuts follow. They also expect China's yuan to slide further, as in 2018-2020 when it depreciated swiftly. Higher dollar yields will also mean a return of carry-trades, with currencies such as the Japanese yen and Swiss franc already heavily sold in the run-up to the election. Yet the Swiss franc will find support, analysts say, thanks to the country's higher-value exports shielding it from tariffs and the currency's tendency to outperform during periods of higher inflation. With a Trump administration expected to take a softer line on cryptocurrency regulation, bitcoin is another potential winner . The world's largest cryptocurrency rose to an all-time high on Wednesday. STOCKS Trump's promise of less regulation and lower taxes for big corporations, more oil production and tough immigration policy point to stronger growth and inflation, viewed as positive for equities. Sectors such as banks, technology, defense and fossil fuels are likely to benefit. His plan to cut the corporate tax rate to 15% from 21% would raise S&P 500 earnings by about 4%, Goldman Sachs estimates. Even so, it is not yet clear how much of Trump's tax cut plan will make it through Congress. At the same time, his protectionist policies and tough stance on China would raise costs, reduce profitability and hurt multinational companies. Outside the United States, a strong dollar, rising U.S. rates and trade tensions will mean defensive sectors will do better and multinational companies with exposure to U.S. markets will take a hit. Sectors exposed to tariff changes, such as semiconductors, autos and clean energy, will likely be volatile. Investors front-running the election outcome have exited holdings of Japanese stocks (.N225) , opens new tab, where automakers dominate, and European electric vehicle and chip stocks. Barclays has warned of possible "high single-digit" percentage drops in European earnings should trade conflicts reignite. Europe's defense sector is likely to have a mixed outcome, after Trump said he will end the Ukraine war but has also said European allies need to spend more on defense. BONDS Investors have been growing increasingly alarmed about the scale of U.S. government debt and fiscal deficits adding to it, with worries that it will push up borrowing costs, or Treasury yields. Trump's spending plans could add $7.5 trillion to deficits over 10 years, according to one estimate, far greater than what Harris had proposed. Treasury yields rose almost 50 basis points in October, when markets were pricing in a higher likelihood of a Trump win. Inflationary pressures from Trump's policies would leave the Fed with less room to cut rates, which will keep Treasury yields elevated. A Trump win is also likely to suppress growth in Europe and Asia, as tariffs and other policies put pressure on those economies. More pressures on the euro, yen, Swiss franc and other currencies, and higher inflation will reduce the room central banks there have to cut rates as needed. Analysts expect global yields to rise. COMMODITIES Trump will aim to maximize U.S. oil and gas drilling by expanding federal leasing and rolling back environmental regulation where possible – a policy agenda that all but guarantees the country will remain the world's top petroleum producer. That robust supply could help keep U.S. West Texas Intermediate crude futures , which dropped around 4% so far this year, relatively low. On the other hand, he's likely to ramp up enforcement of oil sanctions on Iran, something that could trim a swath of world crude supply. He has also said he will fill up the Strategic Petroleum Reserve to levels never seen before, which could add support to prices as the government enters the markets. Soybeans are also in the crosshairs. U.S. merchants had been racing to ship a record-large harvest ahead of the election amid fears of renewed trade tensions with China, the world’s biggest soy importer. China, which failed to fully comply with a 2020 agreement with the Trump administration to buy more U.S. agricultural goods, has purchased fewer U.S. soybeans this marketing year and almost no corn. Soybean prices are down 25% compared to a year ago. EMERGING MARKETS Even before the election, concerns over Trump's policies had weighed on emerging economies. In addition to tariffs on China, Trump has said he would slap a tariff as high as 200% on Mexican vehicle imports. Mexico's peso could weaken beyond 21 to the dollar , levels not seen in more than two years, analysts say. Another potential headwind for emerging markets: Trump's vice presidential candidate JD Vance has proposed a 10% tax on remittances, important for many Latin American economies. South Africa's rand , Brazil's real and stock markets in these countries are vulnerable if there are tariff hikes, as are chipmakers in Taiwan, South Korea and others that produce for Chinese tech firms. A Treasuries sell-off and dollar rise will also suck money out of emerging markets and force tighter monetary policies in many countries. Emerging economies with domestic growth and reform stories such as India or South Africa could benefit and become a haven in otherwise volatile global settings. Copper and lithium producer Chile could be largely spared because of the less-replaceable nature of its exports. SUSTAINABLE INVESTING A Trump win would allow him to follow through on his campaign promises to roll back green regulations curbing oil and gas drilling and coal mining, which could boost shares in those sectors. Trump also has said he would "rescind all unspent funds" under the Inflation Reduction Act, the Biden-Harris administration's signature climate law that includes hundreds of billions of dollars in subsidies for electric vehicles, solar and wind energy. But steps that could actually drive down shares in those sectors may require congressional action and several Republican lawmakers have expressed support at least for parts of it. Trump has also vowed to fire Gary Gensler as chair of the U.S. Securities and Exchange Commission. That would be a setback for U.S. sustainable funds' ability to press companies for policy changes and potentially make those funds less appealing. The funds have faced net withdrawals since 2022 as high energy prices hurt relative returns. Sign up here. https://www.reuters.com/markets/whats-stake-global-markets-trump-presidency-2024-11-06/

2024-11-06 10:51

A look at the day ahead in U.S. and global markets from Mike Dolan Donald Trump's surprisingly comprehensive victory in the U.S. Presidential election has electrified the U.S. dollar - possibly to his own chagrin - and the U.S. currency (.DXY) , opens new tab is eyeing its biggest one-day gain in two years. Even before official results were in, Trump's virtually assured win across key swing states and in the popular vote nationwide looks far more resounding than the tight race predicted by opinion polls and betting markets only yesterday. His Republican party also took the Senate as expected, but a clean sweep of Congress was still in the mix as the House remains too close to call and may return to Democrats. Both stock futures , and Treasury yields jumped immediately on unfolding result, the seeming clarity of which was a relief to some who feared days or even weeks of political and legal wrangling over contested votes. Small cap stocks captured by the Russell 2000 (.RUT) , opens new tab have so far proven the biggest equity index winners - soaring almost 6% ahead of Wednesday's bell. S&P500 and tech-led Nasdaq futures were both up more almost 2% and, significantly, the clear result saw the the VIX 'fear index' of equity volatility plunged to its lowest in more than month - back below historical averages. Wary of another fiscal stimulus via Trump's promised tax cuts on top of an already 6%-of-GDP budget deficit, Treasury were whacked - with the benchmark 10-year yield hitting its highest since July just shy of 4.5%. However, the still-live chance of Democrat-dominated House and resulting gridlock plus the likelihood on Thursday of a second Federal Reserve interest rate cut of the year, limited Treasury losses for now. The fate of the House may now dictate the extent of further bond market losses from here - with the lingering chance 'Red sweep' underscoring tax cut speculation. Ebbing U.S. crude prices , in part due to Trump's enthusiasm for drilling more oil but also on rising domestic inventories and the higher dollar, also cosseted bruised bonds to some degree. Other so-called Trump trades reacted as expected, with Bitcoin gaining as much as 8% to new record highs as the results emerged and digital currency punters cheered a likely soft touch on crypto market regulation from the next president. Shares in Trump Media & Technology (DJT.O) , opens new tab were up more than 50%. And Tesla stock (TSLA.O) , opens new tab jumped 12%, with its Trump-backing billionaire boss Elon Musk recently promised a role leading a government efficiency commission by the likely new president. But the dollar's surge worldwide stood out - its index gains of almost 1.5% at one point captured gains against the euro and Japan's yen to four-month highs while it hit 2-year highs on Mexico's peso and notched its best levels on China's yuan since early August. Regardless of the House outcome, Trump's independent control of trade policy and pledge to ratchet up tariffs against China and the rest of the globe is seen as a dollar positive by crimping the trade deficit and lifting domestic consumer prices. And Tuesday data showed that overseas trade gap increased 19% in September to $84.4 billion, the highest level since April 2022, as imports jumped 3% to a record $352.3 billion. But with Trump inheriting a robust economy, stocks marching higher and Treasury yields climbing on his loose fiscal steer, dollar gains were bolstered - even if Trump and his advisers typically advocate a softer exchange rate to flatter trade competitiveness. Shorter-term, the latest U.S. service sector surveys for last month showed brisk pre-election activity even with contained price readings and S&P500 firms' profit growth is well ahead of forecast for the third quarter. And while futures markets remain confident of a quarter point Fed rate cut on Thursday, pricing now shows just 90 basis points of cuts over the year after that. That would put an implied 'terminal rate' for the Fed cycle as high as 3.75% - almost a full percentage point above what Fed policymakers themselves had indicated when they first cut rates in September. Aside from currencies, overseas stock markets were mostly positive as the U.S. election results unfolded. Mainland Chinese (.CSI300) , opens new tab and Hong Kong (.HSI) , opens new tab stocks, awaiting key Chinese government policy indications this week too, were the main under-performers and lost 0.5% and 2.6% respectively on trade tariff concerns. South Korea's Kospi index (.KS11) , opens new tab also lost 0.5%. But aided by a weaker yen, Japan's Nikkei (.N225) , opens new tab surged 2.6% and both euro stocks (.STOXXE) , opens new tab and Britain's (.FTSE) , opens new tab gained more than 1% each. Perhaps most notable was a slide in euro zone government bond yields in stark contrast to the spike in U.S. Treasury equivalents - in part as the darker world trade outlook and differing fiscal projections either side of the Atlantic widened economic gaps and yield spreads across the ocean. A wobbling German coalition government is also adding to trepidation in the euro zone amid some speculation about a snap election there. Key developments that should provide more direction to U.S. markets later on Wednesday: * Results of U.S. Presidential and Congressional Elections * U.S. Federal Reserve's Federal Open Market Committee starts two-day policy meeting * US Treasury auctions $25 billion of 30-year bonds * US corporate earnings: Qualcomm, Gilead, Ameren, Mckesson, Albemarle, Sempra, Corteva, Atmos, CVS, Howmet, STERIS, ANSYS, Take Two, Host Hotels, Match, Williams, PTC, APA, Iron Mountain, Marketaxess, Cencora, Trimble, American Electric Power, Pinnacle West, Charles River, Johnson Controls etc * European Central Bank President Christine Lagarde and ECB Vice President Luis de Guindos speak Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-pix-2024-11-06/