U.S. index futures rose slightly in pre-market trading on Tuesday as markets await the outcome of a tight presidential race between Trump and Harris. With voting set to begin and an uncertain race that could delay vote counts, caution prevails. Additionally, the Federal Reserve’s decision and earnings reports are expected to impact markets in the coming days.

As of 5:38 AM, Dow Jones futures (DOWI:DJI) were up 54 points, or 0.13%. S&P 500 futures gained 0.17%, while Nasdaq-100 futures rose 0.27%. The 10-year Treasury yield stood at 4.307%.

In commodities, West Texas Intermediate crude for December rose 0.35% to $71.72 per barrel, and Brent for January gained 0.33% to $75.33 per barrel.

Oil prices are trading in a narrow range as the market remains cautious ahead of the U.S. presidential election and the Federal Reserve meeting. OPEC+’s decision to delay production hikes has supported prices, but economic uncertainty and events like China’s Congress and possible storms in the Gulf of Mexico are limiting major moves. Oil production recovery in Libya and Iran’s expansion plans are also influencing short-term supply.

Spot gold (PM:XAUUSD) increased by 0.06% to $2,738.405 per ounce.

Copper (CCOM:COPPER) rose for the third consecutive day, driven by positive economic data from China and expectations for further support measures from Beijing. Chinese services activity expanded rapidly, and recent stimulus efforts appear effective. The government is expected to announce more economic support this week.

In the U.S. economic calendar today, the September trade deficit is set for release at 8:30 AM, with an expected increase to -$84.0 billion from -$70.4 billion. At 10:00 AM, the ISM Services Index for October will be released, expected to fall to 53.7% from 54.9% in the previous month.

Asia-Pacific markets closed mixed on Tuesday, with notable gains in Japanese stocks, which rose on strong corporate earnings during the first day of extended trading. The Topix closed up 0.76%, and the Nikkei 225 gained 1.11%, supported by exporters and positive results from companies like Nomura Holdings and Murata Manufacturing.

China’s CSI 300 index rose 2.53%, and Hong Kong’s Hang Seng rose 1.8% in the final hour of trading. South Korea’s Kospi fell 0.47%, while Australia’s S&P/ASX 200 declined 0.4%.

In China, services activity accelerated in October, with the Caixin/S&P Global services PMI rising to 52.0, boosted by Beijing’s stimulus efforts. This aligns with the official PMI, showing expansion in services and construction sectors. Business confidence improved, though deflationary pressures and weak loan demand mean stimulus efforts are essential to sustaining economic growth in 2024.

In South Korea, inflation slowed to 1.3% in October, the lowest since January 2021 and below the Bank of Korea’s 2% target. This result raises expectations for rate cuts, currently at 3.25%. Declines in oil and food prices contributed to the slowdown, and core inflation, excluding food and energy, rose by just 1.8%.

Australia’s Reserve Bank (RBA) held rates at 4.35%, a 12-year high, signaling a restrictive stance to control underlying inflation. The RBA expects a gradual slowdown in core inflation, projecting 3.4% by the end of 2024 and 2.5% by 2026. Employment growth is expected to reach 2.6% by year-end, with unemployment rising to 4.5% by 2025.

Nintendo cut its annual operating profit forecast by 10% to $2.36 billion due to weakening Switch console sales. Sales for the first fiscal half reached 4.7 million units, compared to 6.8 million the prior year. Annual Switch sales expectations were reduced by 7% to 12.5 million units.

European markets are trading slightly higher amid anticipation for the U.S. presidential election. Mining is the top-performing sector, while oil and gas are lagging.

Notably, Hugo Boss (TG:BOSS) slightly exceeded third-quarter operating profit expectations, reporting EBIT of €95 million, above the forecast of €90 million, despite a 7% year-over-year decline. Currency-adjusted sales reached €1.029 billion, supported by cost management and moderate demand.

Associated British Foods Plc (LSE:ABF) saw profits rise, driven by Primark’s continued recovery as input costs decreased. The company, which has divisions in sugar and food, raised its dividend by 50% and launched a £500 million share buyback. Despite retail challenges, Primark’s autumn and winter sales were strong. AB Foods anticipates lower sugar sector profits due to reduced prices but projects a recovery in 2026.

Schroders Plc (LSE:SDR) experienced outflows of $3 billion (£2.3 billion) last quarter and expects an additional £8 billion this quarter due to a Scottish Widows contract and institutional client losses. Facing challenges amid outflows and slow growth, the firm appointed Richard Oldfield, former CFO and new CEO, replacing Peter Harrison.

Vestas Wind Systems (AQEU:VWSC) shares fell sharply after the company lowered its annual EBIT margin forecast to the lower end of 4-5% and revised its net investment to €1 billion, with service EBIT projected at €450 million.

Adecco Group (LSE:0QNM) reported third-quarter results below expectations, with net income down to €99 million and revenue 4% lower. Adjusted EBITDA fell 21% to €186 million, below analyst forecasts.

AIB Group (LSE:AIBG) maintained its annual outlook but raised its loan portfolio growth forecast to 5-6% in 2024, up from the previous 4%. In the third quarter, gross loans rose 5% to €70.4 billion.

Syensqo (EU:SYENS) shares rose 6.5% after reporting third-quarter profits of €162 million, exceeding expectations. The company also announced a $326.4 million (300 million euros) share buyback program.

Hornby (LSE:HRN) sold its loss-making Oxford Diecast brand for $1.8 million to EKD Enterprises, controlled by former chairman Lyndon Davies. The sale is part of the company’s restructuring, now focusing on its core Corgi, Hornby train, and Scalextric racing car brands.

French tech firm Atos SE (EU:ATO), facing financial difficulties, agreed to sell its Worldgrid unit to Alten SA (EU:ATE) for $294 million, including debt. Worldgrid, which specializes in utility consulting, received regulatory approval and expects to complete the sale by year-end.

The £15 billion merger between Vodafone (LSE:VOD) and Three can proceed if they implement solutions to address competitive concerns. The Competition and Markets Authority deemed the merger potentially favorable, provided significant investments and tariff protections are in place. A final decision is expected by December 7.

Lastly, Schaeffler AG (TG:SHA0) will cut 4,700 jobs across Europe and close two facilities due to the automotive crisis, aiming to save €290 million.

On Monday, U.S. stocks were volatile, ending slightly down after a strong performance on Friday. The Dow Jones fell 0.6%, influenced by Intel (NASDAQ:INTC) and Dow Inc. (NYSE:DOW) exiting the index, replaced by Nvidia (NASDAQ:NVDA) and Sherwin-Williams (NYSE:SHW). Both Nasdaq and S&P 500 dropped 0.3%. The market reflected uncertainty over the U.S. election and Federal Reserve policy, expected to cut rates by 25 basis points. Energy stocks rose as oil prices climbed after the OPEC+ decision.

Election results could impact year-end stock performance, but short-term volatility is expected. Historically, indices tend to rise post-election but may decline the following week. Market instability may increase due to the uncertain outcome, prompting Wall Street strategists to assess potential economic impacts of Trump or Harris victories.

Trump proposed Elon Musk lead an efficiency committee, with Musk planning to reduce the federal budget by $2 trillion. Piper Sandler listed 100 stocks sensitive to these cuts, including Boeing (NYSE:BA) and General Dynamics (NYSE:GD). Defense companies may benefit from increased military spending in a Republican win, while a Harris victory would favor electric vehicle companies and homebuilders.

In addition to the election, the Federal Reserve’s rate decision and remarks from Jerome Powell are anticipated and may affect movements.

On the earnings front, reports from Melco  (NASDAQ:MLCO), Sundial Growers  (NASDAQ:SNDL), ADM (ADM), Apellis  (NASDAQ:APLS), Ferrari  (NYSE:RACE), Apollo  (NYSE:APO), Builders FirstSource  (NYSE:BLDR), GlobalFoundries  (NASDAQ:GFS), LP Building Solutions  (NYSE:LPX) and Navios Maritime Partners  (NYSE:NMM) are expected before the open.

After market close, earnings from Supermicro  (NASDAQ:SMCI), Devon Energy  (NYSE:DVN), Lumen  (NYSE:LUMN), Pan American Silver  (NYSE:PAAS), Kinross Gold  (NYSE:KGC), Microchip Technology  (NASDAQ:MCHP), Coupang  (NYSE:CPNG), BigBear.ai  (NYSE:BBAI), Exact Sciences  (NASDAQ:EXAS) and iRobot  (NASDAQ:IRBT), among others, are anticipated.