As Several US polls Move in Favour of Harris, Dollar Declines – Europe Market Wrap

The Dollar sank and US Treasuries rose as investors reversed their bets on Donald Trump winning the presidential election after weekend polls showed Harris gaining ground.

The Dollar index fell the most in more than a month, while the Mexican Peso, which fell in the aftermath of Trump’s 2016 triumph, was the best performer among 16 major currencies. US stock futures rose.

An ABC News and Ipsos poll showed Harris with a 49%-46% nationwide lead over Trump in the battle for the White House, while a New York Times/Siena survey released Sunday showed the Democratic nominee ahead in five of seven key states.

In recent weeks, the Dollar index and 10-year Treasury rates rose to their highest levels since July, as investors increased their bets on Trump’s second term. The idea is that his support for looser fiscal policy and hefty tariffs will exacerbate the federal deficit and drive inflation, raising interest rates to the harm of treasuries but benefiting the Dollar.

Nvidia’s stock jumped 2.3% in early trade following the announcement that the chipmaker will replace Intel in the 128-year-old Dow Jones Industrial Average. Intel lost 2.3%, while Apple dropped 0.4% as Warren Buffett’s Berkshire Hathaway continued to sell shares in the iPhone maker.