Wall Street is set for a modestly firmer open on Wednesday and global stocks rose after significant US election gains for the opposition Democrats, but the outcome may rule out further tax cuts, sending the dollar and Treasury yields sharply lower.
Gold pared some gains overnight but held firm as the dollar slid after the US midterm elections delivered a split Congress and as investors looked ahead to a Federal Reserve meeting for signals on future interest rate hikes.
The Australian share market was lifted higher by banking and energy stocks on a choppy day's trading as investors awaited the result of US mid-term elections.
Gold fell as US equities and the dollar firmed ahead of the outcome of congressional elections in the United States, denting the precious metal's appeal.
Oil prices have fallen further, with US crude futures sliding to an eight-month low, a day after Washington granted sanction waivers to top buyers of Iranian oil and as Iran said it had so far been able to sell as much oil as it needs to sell.
Wall Street's major indexes have closed higher as voters headed to the polls in US midterm congressional elections and investors hoped the result would provide some relief for stocks after prolonged uncertainty.
The S&P 500 has risen with boosts from financial, energy and defensive sectors as investors showed some caution on the eve of US congressional elections.
Gold inched lower as investors took some profits following a recent rally, but the metal traded within a narrow range as caution set in ahead of the US congressional elections.
Oil prices were mixed after a steep five-day fall, as the United States formally imposed punitive sanctions on Iran but granted eight countries temporary waivers allowing them to keep buying oil from the Islamic Republic.
There was little lead from Wall Street as Australian shares dipped at the start of a new trading week, with energy, healthcare, and telco stocks sapping the local bourse in early trade.
Concerns that a trade deal between the United States and China may not be imminent have reined in a rally in world equity markets and reversed gains on Wall Street.
Oil prices have fallen about one per cent and notched a weekly loss of over six per cent, as investors worried about oversupply after the United States said it will temporarily spare eight jurisdictions from Iran-related sanctions.
Gold has slipped as the US dollar regained some ground on the back of strong American jobs data, putting the metal on track for its first weekly loss in five weeks.
A late rally from mining and health care stocks has lifted the Australian share market into the black despite energy shares and the big four banks dragging on the index.
Australian shares have fallen at the open despite overnight gains on Wall Street, with energy stocks slipping on falling oil prices, and the financial sector also dragging on the bourse.
Oil has fallen nearly 3.0 per cent, with US crude futures hitting lows not seen since April, due to growing concerns that global demand is weakening at a time when output from the world's major oil producers is surging.
US stocks have risen for a third straight session as President Donald Trump said trade talks with China were "moving along nicely," reviving hopes that the two countries can resolve their trade dispute.
