Investing.com - Here are the top five things you need to know in financial markets on Monday, October 10:
1. Financial markets continue to price in Clinton win after debate
With less than a month before the vote, global financial markets continue to view that Democrat Hillary Clinton will edge out her Republican rival, Donald Trump, in the U.S. Presidential Election.
Online betting companies shortened the odds on a Clinton win following the second televised U.S. presidential debate on Sunday night and amid a scandal over vulgar comments Trump made about women in a 2005 video that emerged over the weekend.
Traders are mostly expecting Democratic candidate Hillary Clinton to win the presidency and have not factored in the implications of a victory for Donald Trump. The idea of Trump in the White House is a worrying one for some investors who balk at his populist, unpredictable style.
2. Mexican peso jumps 2% after U.S. debate, Trump video fallout
The Mexican peso rallied on Monday, as markets saw less chance of a victory by Donald Trump in his U.S. presidential bid amid a scandal over vulgar comments he made about women.
The peso, seen as a gauge of the presidential election sentiment due to its close trade ties with the U.S., jumped more than 2% against the greenback to 18.909 at one point, its highest level in nearly a month, before giving back some gains to trade at 18.938 during morning hours in New York, up 1.9% on the day.
The peso has been a barometer of investor anxiety about the November election, falling when Trump advances in polls and gaining when he slumps.
3. Oil declines as markets await OPEC headlines from Istanbul
Oil prices were lower on Monday, moving away from the highest level in four months as traders eyed comments from crude producers at this week’s World Energy Conference in Istanbul.
Brent was down 23 cents, or 0.44%, to $51.70 a barrel, while U.S. crude shed 31 cents, or 0.62%, to $49.50 a barrel.
Futures fell by more than 1% earlier after comments made by Russia's energy minister cast doubt over a deal to cut output to rein in global oversupply at a meeting in Turkey this week. Furthermore, reports that Iraq and Iran will not attend the conference also weighed.
4. Global stocks mixed with U.S. debate, oil, pound in focus
U.S. stock index futures pointed to a higher open on Monday morning, with the Dow futures up 50 points, in wake of the second presidential debate between Donald Trump and Hillary Clinton.
Trading volumes were expected to remain thin, with most banks and federal institutions closed for the Columbus Day holiday. That also means no major data releases are on tap for Monday.
Meanwhile, European and U.K. stocks wobbled in mid-morning trade, as investors remained cautious amid concerns over Deutsche Bank and as the British pound languished near a three-decade low.
Earlier, Asian shares closed mixed, as markets eyed movements in the oil market. Markets in Hong Kong, Japan and Taiwan were shut for public holidays.
5. Deutsche Bank shares slide after no deal reached with DoJ
In Frankfurt, shares of Deutsche Bank (DE:DBKGn) dropped almost 4% after Chief Executive John Cryan failed to reach a settlement with the U.S. Department of Justice at the weekend over the lender’s handling of mortgage-backed securities.
Negotiations with the DoJ, which last month announced it may seek up to $14 billion from the bank to resolve investigations into crisis-era mortgage securities, are continuing, according to people familiar with the matter.
Shares of the German banking giant are down nearly 50% so far this year amid concerns over the lenders weakening financial health.
Deutsche Bank is expected to issue new shares, sell assets, or both, once it knows the scale of the fine, to ensure that its capital ratio remains within regulatory limits.