By Chibuike Oguh
NEW YORK (Reuters) -Global stocks were trading higher on Friday, although they were set for a weekly loss amid U.S. election jitters, while oil prices rose due to concerns about fighting in the Middle East.
Republican former President Donald Trump and Democratic Vice President Kamala Harris are polling neck and neck in crucial swing states ahead of the Nov. 5 U.S. election, and investors are anxious about a contested result roiling world markets and unleashing fresh geopolitical uncertainty.
The benchmark was on track to finish the week slightly lower, although gains in technology and communication services stocks were pushing the index higher on the session.
The fell 0.16% to 42,308.60, the S&P 500 rose 0.49% to 5,838.33 and the rose 1.15% to 18,627.44.
The European shares index ended slightly lower 0.04% after giving up gains in choppy trading and finished 1.2% lower. Overnight in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan closed higher by 0.3% but dropped nearly 2% for the week.
“Over time, interest rates, inflation and the economy are the leading factors that affect the stock market,” said Tom Plumb, CEO and portfolio manager at Plumb Funds in Madison, Wisconsin.
“But in the short run, there’s no question that this is a market being bounced around by political developments and expectations, and the general perception that Trump would be better for the markets than Harris.”
futures rose 2.15%, to $75.98 a barrel. U.S. West Texas Intermediate crude was up 2.27% at $71.78.
U.S. Treasury yields edged higher as investors wait on key employment data next week for fresh clues on the likely path of Federal Reserve interest rate cuts.
Traders are now pricing in near 95% odds of a 25 basis-point cut at the Fed’s November meeting, according to the CME Group’s (NASDAQ:) FedWatch Tool. The yield on benchmark U.S. 10-year notes rose 0.6 basis points to 4.208%.
The dollar advanced and was set for a fourth weekly gain against Japan’s yen, as an uncertain backdrop for markets sent the yen near three-month lows ahead of an election in Japan over the weekend.
The dollar strengthened 0.14% against the yen to 152.03. Against the Swiss franc, the dollar strengthened 0.09% to 0.866. The euro, however, was down 0.14% at $1.0812. Sterling strengthened 0.05% to $1.2978.
The , which measures the greenback against a basket of currencies including the yen and the euro,rose 0.11% to 104.16.
Gold prices were flat in choppy trading after retreating from record highs. rose 0.08% to $2,737.94 an ounce. U.S. fell 0.04% to $2,733.90 an ounce. Prices had hit an all-time high of $2,758.37 on Wednesday.