Investors will likely follow the latest geopolitical developments around the world.
In Brazil, far-right candidate Jair Bolsonaro was declared the next president of Latin America’s biggest country. Reports said that with 96 percent of ballots counted, Bolsonaro has 55.5 percent of the votes.
Bolsonaro pledged to reform government finances and reorient diplomatic relations in his first public comments on Sunday after winning the polarizing run-off vote, according to reports. Still, many Brazilians are concerned that he might curtail civil liberties, trample on human rights and muzzle freedom of speech.
On the back of Bolsonaro’s election win, the Tokyo-listed Brazilian stock exchange traded fund rose almost 14 percent. Brazil’s stock market outperformed in the run-up to the election, contrary to the overall downward trend in global stock markets for October.
Meanwhile in Germany, Chancellor Angela Merkel’s junior coalition partners gave her conservative Christian Democrats until next year to deliver more policy results, threatening to end their alliance if there is no improvement. Both parties suffered in a regional election on Sunday.
The euro traded at $1.1392 on Monday morning during Asian hours, easing from an earlier high of $1.1412.
Source : CNBC