World Markets Lower As US Presidential Race Tightens

Mohammad Ali (@ChaudhryMAli88) Published November 01, 2016 | 10:30 PM

LONDON, Nov 1, (APP - UrduPoint / Pakistan Point News - 01st Nov, 2016 ) - Gains in world stocks on upbeat Chinese data fizzled Tuesday as companies turned in mixed results and uncertainty mounted over the US presidential race.

Hong Kong led most major Asian markets higher after China's closely watched purchasing managers' index hit its highest level in more than two years, Beijing said, indicating that the important manufacturing sector -- and the world's number two economy -- is levelling out.

A separate private index also beat expectations to hit its highest mark since July 2014. The figures come weeks after official data showed economic growth stabilising and putting the government on track to achieve its annual target, while another reading showed a first increase in factory gate prices for four years.

But European equities failed to hold onto early gains and Wall Street quickly headed lower after a new poll showed that just a week before voting day, the US presidential candidates are neck-and-neck.

"An initial boost from positive Chinese economic data fizzled out on Tuesday as attention turned to the rising possibility of a Trump presidency," said CMC Markets analyst Jasper Lawler. London closed down 0.5 percent, while Paris dropped 0.9 percent and Frankfurt lost 1.3 percent.

On Wall Street, the Dow Jones Industrial Average was down 0.4 percent in midday trading. An ABC News/Washington Post tracking poll out Tuesday found Republican presidential nominee Donald Trump edging ahead of Democratic rival Hillary Clinton by one point for the first time since May.

Trump's 46-45 percent lead in the four-way race for the White House, while well within the margin of error, possibly reflected the renewed controversy over Clinton's use of a private email server while secretary of state.

Globally, investor confidence remains fragile after Friday's bombshell news that the FBI was investigating additional emails connected to Clinton, Wall Street's preferred candidate.