US midterm vote and Iran talks reports frame Tuesday's market backdrop
US voters decide control of Congress on Tuesday, while Iran says its government has powers to talk with Washington. Crude oil traded higher on Tuesday morning amid unconfirmed reports of US strikes.
- 01US voters decide control of Congress on Tuesday; the result will determine which party controls the two chambers.
- 02Iran's president said the Supreme Leader gave the government certain powers for talks with the US.
- 03Crude oil traded higher on Tuesday morning amid unconfirmed reports of US attacks on an Iranian island.
- 04ISM Manufacturing PMI for October was 55.5 against a 54.6 estimate; JOLTs job openings are due at 15:00 UTC.
US voters go to the polls on Tuesday to decide control of Congress, in midterm elections that cover the last two years of Donald Trump's presidency. Separately, Iran said its government has been given powers to negotiate with Washington.
What happened
The midterm election will determine which party controls the two chambers of Congress. Barack and Michelle Obama issued a final appeal to citizens to vote. One report said polls indicate possible challenges for the Republican Party.
On the Iran front, President Masoud Pezeshkian announced that the Supreme Leader granted the government certain powers for talks with the United States. Iran also indicated that communication with Washington through mediators is underway. Iran proposed a two-day plan for reopening the Strait of Hormuz.
Crude oil traded higher on Tuesday morning. The move came amid reports that US forces attacked an island in Iran. The reports are unconfirmed.
Why it matters
The election result will determine which party controls the two chambers. That outcome covers the final two years of the current presidential term, and the vote is the main political event on the calendar for Tuesday.
The Iran headlines combine two strands: a signal that Tehran is preparing for contacts with the United States, and unconfirmed reports of US strikes. Iran also set out a plan for reopening the Strait of Hormuz over two days.
Trade policy is also in the news. India's trade minister Piyush Goyal said India would make tunnel boring machines at home if China limits its exports. The stated aim is to reduce reliance on foreign supplies.
On data, the ISM Manufacturing PMI for October was 55.5, against a 54.6 estimate and 54.5 previously. For investors, the day brings a political event, geopolitical headlines and a US labor-market release at the same time.
What to watch next
The first item is the election outcome and which party controls each chamber of Congress. The second is whether the contacts between Iran and the United States through mediators lead to formal talks, and what happens with the Hormuz reopening plan.
On the calendar, US JOLTs job openings for September are due at 15:00 UTC on Tuesday. The estimate is 7.1 million, against a previous reading of 7.08 million.
Sources:UCapital Markets (ucapital.com)cnbc.comeconomictimes.indiatimes.comthehindubusinessline.comeconomictimes.indiatimes.comeconomictimes.indiatimes.com
UCapital24 S.p.A. or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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