Taiwan Sees ‘More Pros Than Cons’ If Trump Wins Back Presidency
Top Taiwanese officials yesterday moved to ease concern about the potential fallout of Donald Trump’s return to the White House, making a case that the technology restrictions promised by the former US president against China would outweigh the risks to the island. The prospect of Trump’s victory in this week’s election is a worry for Taipei given the Republican nominee in the past cast doubt over the US commitment to defend it from Beijing. But other policies championed by Trump toward China hold some appeal for Taiwan. National Development Council Minister Paul Liu described the proposed technology curbs as potentially having “more pros than cons” for Taiwan. Such restrictions are likely to prompt more Taiwanese companies to shift production back from China and redirect export orders to local manufacturers, he said. When asked by a lawmaker yesterday about Taiwan’s preparations for the US election results, Liu said that while the island might also face a 10 percent tariff on its goods, “the impact would be limited, as most suppliers in Taiwan are primarily doing contract manufacturing serving the US clients.” A Trump victory could make a bigger difference for Taiwan than a win by US Vice President Kamala Harris, according to Liu, though he said Taiwan is prepared for various outcomes. Responding to lawmaker questioning, Minister of Economic Affairs J.W. Kuo said he expected Harris would likely continue the Democratic Party’s policies on Taiwan. Kuo acknowledged that Trump could introduce measures that might prove harmful for Taiwan’s semiconductor industry. But Taiwan “will have strategies in place to respond, and the impact will not be as severe as some anticipate,” he said. China claims the self-governing democracy is its territory, and has threatened to seize the island by force if needed. US President Joe Biden has repeatedly vowed to defend Taiwan in the event of an “unprecedented attack.” In an interview with CBS News’s “60 Minutes,” Harris hewed closer to the traditional US policy of “strategic ambiguity” while saying it’s important to help Taiwan defend itself. Trump has been less supportive, telling Bloomberg Businessweek earlier this year that Taiwan stole the US’s chip business. He also called for the island to pay more for defense and noted the challenges of defending it from Beijing. “Taiwan is 9,500 miles away,” Trump said. “It’s 68 miles away from China.” In a subsequent interview with Bloomberg editor-in-chief John Micklethwait last month, Trump didn’t answer directly when asked if American troops would defend Taiwan if China invaded.–BLOOMBERG
Empowering SMEs for Growth: Inside RichWorks’ Proven Strategies for Business Success
In the ever-changing landscape of entrepreneurship, SMEs face unique challenges as they strive for growth and sustainability. RichWorks International, known for its comprehensive mentoring programs, has played a pivotal role in helping small and medium enterprises (SMEs) across Southeast Asia overcome these challenges, scale operations, and achieve notable milestones. Through tailored approaches in mentorship, digital strategy, and brand development, RichWorks has equipped businesses with the tools to reach new heights. Here’s a closer look at how their programs are transforming the business landscape. Success Stories: The Journey to RM1 Million and Beyond The Spire Mentoring Program, launched by RichWorks in 2018, exemplifies the company’s commitment to guiding entrepreneurs through their initial growth phases. Since its inception, the program has helped 391 entrepreneurs reach their first RM1 million in sales. An inspiring example is Adibah Mazlan, the founder of The Raw., a local skincare brand. Adibah, a registered pharmacist, ventured into entrepreneurship in 2019 but faced initial struggles, including three months without sales. Her breakthrough came after joining the 10X Bina Bisnes Berjaya Program and subsequently, the Spire Mentoring Program. Within three months, her revenue skyrocketed to RM500,000, a significant leap from her previous monthly sales of RM30,000. After seven months, The Raw. achieved RM1 million in sales, propelling Adibah to focus solely on her business, which hit RM16.8 million in sales by 2023. Now a Titan Circle Plus++ member and Gladiator at RichWorks, Adibah’s story highlights the transformative power of mentorship. “I hold weekly sessions with our Titanium members, ensuring they stay refocused and aware of the latest market trends, consumer behavior, and emerging opportunities. These sessions are crucial in helping entrepreneurs understand the shifting landscape and the challenges they must be prepared for,” explained Datuk Wira Dr. Azizan Osman, Founder and Mentor of RichWorks. Scaling Up: Strategies for the Next Wave of Titanium Entrepreneurs To help entrepreneurs scale from RM1 million to RM10 million in annual sales, RichWorks emphasizes strategies that go beyond foundational business practices. The Titanium Program is designed to equip high-growth SMEs with the tools for scaling, systemization, and leadership development. These strategies include: Systemization and Efficiency: Entrepreneurs are trained to build scalable systems that manage operational complexities and optimize supply chains. This enables them to focus on growth rather than being consumed by daily operations. Data-Driven Decision Making: Tracking key performance indicators (KPIs) and using data analytics ensures that decisions are based on facts, not intuition. Leadership Development: RichWorks mentors emphasize building high-performance teams, effective delegation, and nurturing a growth-oriented culture, vital for sustainable scaling. “Our mentorship equips SMEs with a real-time understanding of what’s happening in the market. During the pandemic, we guided businesses to pivot their strategies to digital marketing and e-commerce, resulting in significant growth for many members,” Dr. Azizan highlighted. Addressing Current Challenges: Economic Conditions and Solutions SMEs in Southeast Asia are navigating significant challenges, including economic uncertainty, shifting consumer behavior, and digital competition. RichWorks’ tailored strategies help SMEs adapt and thrive amidst these difficulties: Economic Uncertainty: RichWorks teaches SMEs financial resilience by focusing on cash flow management, cost control, and creating financial buffers. Shifting Consumer Behavior: To respond to increased online purchasing and the demand for personalized experiences, RichWorks supports SMEs in enhancing their digital presence and leveraging e-commerce. Intensified Digital Competition: Mentorship programs cover cost-effective digital marketing, social media optimization, and automation tools to help SMEs compete against larger players. “These real-time insights, coupled with strategic execution, allow SMEs to anticipate market shifts, capitalize on emerging trends, and stay competitive in an ever-changing business environment,” Dr. Azizan explained. Digital Marketing Strategy Development RichWorks’ structured approach to digital marketing involves assessing an SME’s current capabilities and crafting a tailored plan that includes: CRM Systems: Essential for managing customer data and segmentation. Email Marketing: Maintains customer engagement and builds loyalty. Platform Prioritization: Based on the target market, RichWorks advises on optimizing presence across social media, e-commerce sites, and digital ad platforms like Facebook, Instagram, Google Ads, and TikTok. “Once we understand their level of digital marketing maturity, we prioritize tools and platforms that suit their needs, focusing on areas such as email marketing and CRM systems to boost engagement and loyalty,” said Dr. Azizan. Transforming Brands: Case Studies of Sabella and Nurraysa RichWorks has guided several businesses to redefine their brand positioning for substantial growth: Sabella: Known for its product quality, Sabella amplified its brand visibility through a multi-channel strategy, including digital marketing, influencer partnerships, and sponsorships like AJL35. This broadened their reach and solidified their position in the market. Nurraysa: Initially focused on zero-cost social media marketing, Nurraysa expanded into paid advertising under RichWorks’ mentorship, boosting its brand presence in the beauty market. “Our mentorship helped these businesses understand when and where to invest in branding, moving beyond free marketing methods and leveraging paid media strategically to achieve significant growth and market presence,” Dr. Azizan said. A Standout Success: The Raw.’s Transformative Journey A notable transformation story is that of The Raw., which grew from RM30,000 in monthly sales to over RM10 million in annual revenue. This shift was fueled by a strategic combination of radio advertising, billboard placements, and sponsoring high-profile events like the TikTok Awards Malaysia 2024. These moves reinforced brand credibility and resonated with a younger, tech-savvy audience, positioning The Raw. as a leader in the skincare industry. “We guided The Raw. to invest in radio commercials and strategic billboard placements, helping them establish credibility and become a top-of-mind brand for consumers,” Dr. Azizan reflected. A Pathway to Sustainable Growth RichWorks’ mentorship programs and strategic guidance have empowered hundreds of SMEs to navigate the complexities of growth and adapt to an evolving market landscape. Through targeted mentoring, practical strategies, and data-driven insights, RichWorks enables businesses to monitor market shifts, scale operations, and build strong brand identities that lead to sustainable success. “Our approach is about more than just guidance; it’s about ensuring SMEs build the confidence to pivot, grow, and compete with resilience,” concluded Dr. Azizan.
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watchTowr Appoints Elvina Liow to Vice President, APAC
SINGAPORE & LONDON: watchTowr, the cybersecurity company redefining External Attack Surface Management, today announced the promotion of Elvina Liow to Vice President (VP) of APAC. Having served as VP of Commercial since February 2024, Elvina will now lead watchTowr’s business across the Asia-Pacific region, driving all aspects of business strategy, execution, and growth. Her leadership will be critical to continuing the company’s hyper-growth and strengthening its presence in the region. “Elvina has been pivotal to watchTowr’s continued success and a key driver of our success in the region. Her leadership has been instrumental in expanding watchTowr’s commercial footprint and deepening both customer and partner relationships,” said Benjamin Harris, CEO and founder, watchTowr. “Her deep understanding of both the cybersecurity landscape and our customers’ evolving needs makes her the ideal person to lead our APAC business as we continue our rapid growth and global expansion.” Elvina joined watchTowr in 2022 as an Account Director, following over a decade of experience in senior sales, product management, and business development roles at industry leaders such as NTT and F-Secure. She quickly grew her career at watchTowr, earning a promotion to Head of Commercial within a year and assuming the role of VP of Commercial in February 2024, becoming part of watchTowr’s extended leadership team. “I’m truly honored to enter this role at such an exciting time for watchTowr. The APAC region has been a core foundation of the business, paving the success of our global expansion. The team has delivered impressive results, building a great client network and strong partnerships in the region,” said Liow. “Our mission to help organizations continuously validate and strengthen their security postures is more important than ever, and I look forward to deepening our presence and driving significant growth across the region.” Elvina’s promotion follows watchTowr’s recent $19 million Series A funding round, which will further accelerate its growth plans by expanding its go-to-market, research, and engineering teams. In her new role, Elvina will assume full responsibility for watchTowr’s business in the APAC region, scaling operations and driving the company’s mission to redefine and lead the external attack surface management market globally.
Luxshare Precision Reports Steady Growth in Q3 2024 Results, Optimistic About Annual Performance
HONG KONG SAR: Luxshare Precision (002475.SZ) announced its Q3 2024 financial results on October 25. In the first three quarters of the year, the company achieved approximately RMB177.177 billion in revenue, reflecting a year-on-year growth of 13.67%. The net profit attributable to shareholders of the listed company reached RMB9.075 billion, marking a year-on-year increase of 23.06%. These figures highlight the company’s robust performance, driven by its deep engagement in several key business segments. A core pillar of Luxshare Precision is consumer electronics, where strong partnerships with longstanding clients like Apple Inc. have yielded significant returns. Additionally, in the communication and data center sector, along with the automotive electronics area, the company has launched innovative products and solutions that have garnered positive market feedback, emerging as new growth drivers. In the consumer electronics sector, Luxshare Precision continues to demonstrate its technological prowess. In September 2024, Apple Inc. launched the iPhone 16 series. According to Counterpoint Research, sales of the iPhone 16 Pro and Pro Max surged by 44% compared to last year’s models. The new iPhone experienced a strong debut in the Chinese market, with sales in the first three weeks up 20% compared to the 2023 models. Recently, Apple’s Chief Operating Officer, Jeff Williams, accompanied by Luxshare Precision’s Chairwoman, Ms. Wang Laichun (Grace Wang), visited the factory in Kunshan, Jiangsu, where he praised the advanced automation and maturity of the production lines. This endorsement from such a pivotal partner not only underscores Luxshare Precision’s significant role in the global consumer electronics market, but also highlights its commitment to quality and technological innovation. Moreover, Apple Inc. has announced the launch of its Apple Intelligence feature on October 28, alongside iOS 18.1. This feature will integrate Siri and ChatGPT to enhance user experience. The introduction of Apple Intelligence is expected to boost sales of Apple products, from which Luxshare Precision stands to benefit, further promoting its development in the consumer electronics sector. In the communication and data center sector, Luxshare Precision is focusing on core products related to electrical connections, air-cooled/liquid-cooled cooling systems, and power management to meet the demand for high-performance solutions. The company has made significant strides in high-speed interconnection within data centers. At the 2024 OCP Global Summit, Luxshare Precision showcased its proactive contributions to AI data center innovations. Its subsidiary, Luxshare-Tech, introduced 224G High-Speed Interconnect Systems, Liquid Cooling System Solutions, and High-Power Interconnect Systems, all designed with advanced manufacturing processes to ensure stability and reliability during high-speed data transmission, supporting the rapid growth of AI applications. Overall, Luxshare Precision is continually deepening its diversified development strategy to solidify its position as a comprehensive technology manufacturing enterprise while actively addressing potential market challenges. Over the past year, the company has strategically executed several important acquisitions, further enhancing its market position in manufacturing and automotive sectors. In the automotive sector, Luxshare Precision has formed strategic partnerships with major global automotive manufacturers in areas such as wiring harnesses, connectors, intelligent cabins, and intelligent driving. Through continuous innovation and improved production capacity, the company is enhancing its competitiveness in the automotive market. To accelerate the globalization of its automotive business, Luxshare Precision announced plans to acquire a 50.1% stake in German cable and harnessing manufacturing giant Leoni AG and 100% of its wholly-owned subsidiary, Leoni Kabel GmbH. Grace Wang stated that the company aims to leverage Leoni’s resources in conjunction with Luxshare Precision’s own strengths, thus expanding its global business footprint and driving innovation to provide greater value to customers. This strategic move will further solidify Luxshare Precision’s position in the global automotive wiring harness market and expand additional market opportunities. In the consumer electronics sector, Luxshare Precision plans to acquire a majority stake in Pegatron’s Kunshan factory for RMB2.1 billion, which will make it the largest shareholder of the factory and position it to become the second-largest iPhone assembler globally. This acquisition is expected to further consolidate its role within Apple’s supply chain. Furthermore, Luxshare Precision has completed the acquisition of Qorvo’s packaging and testing facility in China, which is expected to enhance its packaging and testing capabilities in the consumer electronics RF front-end module sector, further strengthening its competitive advantage in the industry. The acquired facility specializes in core components for wireless communication modules, focusing on the mobile cellular market. Through these strategic acquisitions, Luxshare Precision continues to optimize and deepen its business layout, laying a solid foundation for future growth. Luxshare Precision projects that its net profit for the entire year of 2024 will reach between RMB13.143 billion and RMB13.691 billion, indicating a year-on-year increase of 20.00% to 25.00%. Excluding nonrecurring profit and loss, the net profit is projected to be between RMB11.486 billion and RMB12.713 billion, with a year-on-year growth of 12.76% to 24.82%. Having been listed among Fortune Global 500 for two consecutive years, Luxshare Precision will continue to pursue a dual-driven strategy of internal growth and external expansion to promote steady business growth. Looking ahead, with the launch of new Apple products and ongoing growth in the communications and automotive areas, Luxshare Precision’s future business performance appears promising.
Digital transformation drives 46.6% increase in profit before tax, and proceeds a 20% dividend payout
HO CHI MINH CITY: Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – Stock code: HDB) announces its 9 months business results with profit before tax reaching VND 12,655 billion (US$500 million), an increase of 46.6% year-on-year, achieving 79.8% of the full-year targets. HDBank achieved a strong ROE of 26.7% and an ROA of 2.2%, placing it among the leading banks in the sector. HDBank continued its track record of regular dividend payouts by implementing a 30% dividend for 2023. This included a 10% cash dividend paid in July, and the Bank is now finalizing the procedures for a 20% stock dividend. This positive business performance reaffirms HDBank’s position among the top universal banks with a solid foundation, strong financial health, and ability to maintain high and continuous growth for many consecutive years, with good profitability ratios. HD SAISON, the consumer finance arm of HDBank, continued its strong recovery, with its loan book growing 15% YoY. Profit before tax surged by 126% to reach VND 906 billion (US$35.8 million), achieving an ROE of 22.9%, making it one of the most profitable consumer finance company in the sector. As of September 30, 2024, HDBank reported total consolidated assets of VND 629 trillion ($24.8 billion), reflecting a YoY increase of 23.9%. Similarly, total funding mobilization reached VND 559 trillion ($22 billion), demonstrating a 24.8% rise YoY. The Bank also recorded a total outstanding loan balance of VND 412 trillion (16 billion), marking a 16.6% increase since the beginning of the year. HDBank strategically directs credit flows towards key sectors driving economic growth, including rural agriculture, small and medium enterprises (SMEs), value-chain finance, household businesses, traders, and green credit initiatives. The non-performing loan ratio as prescribed by the State Bank is only 1.46%, lower than the sector average; Capital Adequacy ratio (CAR) of 14.8% under Basel II standards. Other prudential indicators are at healthy levels, demonstrating the effectiveness of HDBank’s sustainable development strategy, which comprehensively integrates ESG factors. With these positive results over the first nine months, HDBank has solidified its position among leading banks in the sector. The Bank is well-positioned to maintain high and continuous growth, ensuring the successful completion of the General Meeting of Shareholders’ plan.
OPPO and HKPolyU Renew Collaboration and Launch Joint Innovation Research Centre to Expand AI Imaging Frontiers
HONG KONG SAR: Guangdong OPPO Mobile Telecommunications Corp., Ltd. (OPPO) and The Hong Kong Polytechnic University (PolyU) held a signing ceremony to further deepen their collaboration based on the agreement signed in 2022, contributing to the integration of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). According to the renewal agreement, OPPO will collaborate with PolyU to increase funding and technology investment, upgrading the “PolyU-OPPO Joint Innovation Research Centre”, which marks a new chapter in the comprehensive partnership in AI imaging technology. The signing ceremony took place last Friday (1 November) at the PolyU campus, witnessed by Prof. Jin-Guang TENG, President of PolyU and Mr Jason LIAO, President of OPPO Research Institute. The agreement was signed by Prof. Christopher CHAO, Vice President (Research and Innovation) of PolyU and Mr Zheng QIN, Head of Industry-Academia Affairs of OPPO. Under the framework of the agreement, the “PolyU-OPPO Joint Innovation Lab” will be upgraded to the “Joint Innovation Research Centre.” Additionally, OPPO will provide no less than RMB 30 million over the next five years to expand the scale of co-trained PhD and postdoctoral researchers, promoting technical development and exploration in imaging algorithms while further deepening the collaborative efforts between OPPO and PolyU in AI imaging technology. “In the three years of collaboration between OPPO and PolyU, we have witnessed significant technological breakthroughs and notable achievements in talent cultivation through the Joint Lab,” said Jason LIAO. “Adhering to our mission of ‘Technology for Mankind, Kindness for the World’, OPPO is dedicated to deepening the integration of academia-industry cooperation in the field of AI through this renewal, bringing more innovative intelligent imaging experiences to global users.” Prof. TENG remarked, “To address the opportunities and challenges of the AI era, PolyU will officially establish the Faculty of Computer and Mathematical Sciences in January 2025. This is an important move to implement the University’s innovation development strategy, aiming to meet growing technological needs and support talent nurturing. The Department of Computing, which houses the Joint Innovation Research Centre will also join the new faculty. The new structure will effectively promote in-depth exchanges and collaboration among research teams, and create more impactful outcomes. We believe that this in-depth cooperation with OPPO will enable us to fully seize opportunities and actively promote technological innovation and knowledge transfer.” In 2022, to promote in-depth cooperation in GBA, OPPO and PolyU signed an agreement to establish the “PolyU-OPPO Joint Innovation Lab.” Within just three years, the Joint Lab has achieved a series of innovative milestones, successfully developing and implementing various leading imaging algorithms: the AI super-resolution technology has been applied to multiple OPPO products, significantly enhancing the image quality of telephoto photography; the deployment of HDR imaging algorithms enables users to capture high-quality photos under different lighting conditions, greatly enhancing the photography experience. Furthermore, the Joint Lab has actively explored cutting-edge technologies, including image restoration and detail enhancement based on generative models, as well as interactive image and video editing technologies. These efforts have improved the quality and stability of image generation and provide more possibilities for image and video post-processing. Additionally, the Joint Lab has made significant strides in talent cultivation, nurturing several PhD and postdoctoral researchers who are actively contributing to OPPO’s AI imaging technology, providing a strong driving force for continuous technological innovation. The evolving collaboration between OPPO and PolyU will propel the further development of AI imaging technology, providing new momentum for technological innovation and talent development in the GBA. Looking ahead, both parties will continue to strengthen the academia-industry cooperation, fully exploring and promoting innovative applications of AI imaging technology.
Europe’s leading mobility company, Bolt is launching its ride-hailing service in Klang Valley
KUALA LUMPUR: Europe’s leading mobility company, Bolt is launching its ride hailing service in Klang Valley. The people of Klang Valley can use a new mobility solution to move around the city that’s quick, comfortable and efficient with the launch of Bolt’s ride-hailing service. Bolt allows customers to request rides quickly and conveniently through their smartphones. In addition to providing flexible earning opportunities for residents of Klang Valley, who can register as drivers and take full control of their schedules, Bolt aims to address the growing demand for last-mile transportation solutions. By easing the pressure on the public transport system, Bolt enhances accessibility to shared mobility across the city. Furthermore, by introducing more competition to the market, Bolt provides passengers and drivers with a compelling alternative to existing services, promoting greater choice and improved experiences for all. Moving towards better cities Bolt is on a mission to help people give up privately owned vehicles and start using shared mobility more. This will help tackle issues such as congestion, traffic and air pollution and will resignify the public space by reducing car-centric infrastructure. The long-term goal is to seamlessly integrate the Bolt platform into the urban transport ecosystem of a city. In order to do that, Bolt’s ride-hailing service helps shift people from private cars to shared mobility, improving quality of life by reducing the need for private vehicles and complementing local public transport infrastructure. Market Potential in Malaysia: In Malaysia, the number of users in the ride-hailing market is expected to reach 11.47 million by 2029. Bolt aims to tap into this growing market by providing an affordable, accessible, and low-emission mobility solution for both drivers and riders in Klang Valley and beyond. Afzan Lutfi, General Manager Malaysia at Bolt, said: “Bolt’s mission to build cities for people, not cars, is central to everything we do. In Malaysia, we’re committed to helping reduce traffic congestion and transform public spaces by encouraging the shift from private car ownership to shared mobility. Our approach is to provide affordable, accessible, and low-emission solutions that meet the evolving needs of both drivers and riders in the Klang Valley and beyond. By leading this change, we’re not only supporting the country’s goals for urban mobility but also enhancing quality of life by prioritising people over cars. Bolt’s presence offers a reliable alternative for last-mile connectivity, helping alleviate pressure on public transportation systems and shaping a more liveable future for Malaysian cities.” The company is offering a safe and reliable in-app ecosystem that helps riders and drivers build mutual trust. This is being done through the usage of a number of safety features but also with the help of Bolt’s customer support service.
TCS Secures RM86.38 Million Construction Contract with Sime Darby Property at Elmina Business Park
KUALA LUMPUR: TCS Group Holdings Berhad (“TCS” or the “Group”) announced that its wholly-owned subsidiary, TCS Construction Sdn. Bhd. (“TCSCSB”), has been awarded a construction contract worth RM86.38 million by Sime Darby Property Berhad (“Sime Darby Property”). The contract involves the construction and completion of 60 units of 2-storey semi-detached factories at Elmina Business Park in Selangor. Dato’ Ir Tee Chai Seng, Managing Director of TCS, expressed his gratitude, stating, “We are honoured to be entrusted by Sime Darby Property, a valued and returning client, to undertake this project. Their continued confidence in our ability to deliver high-quality projects on time, with a strong focus on workplace safety, is greatly appreciated. We are committed to meeting and exceeding their expectations.” He further added, “This new project supports our growth momentum and provides strong earnings visibility for the next two to three years. On the broader industry front, we are seeing positive market conditions, with stable material costs and an increase in both public and private sector projects. This favorable environment presents sustained growth opportunities for the construction industry, and TCS is well-positioned to capitalize on these trends. We look forward to sharing more positive developments with our stakeholders in the near future.” The contract has a duration of 24 months, set to begin in December 2024, with an expected completion date in December 2026.
Stocks jump on Election Day as investors eye outcome
NEW YORK: US stocks closed sharply higher in a broad rally on Tuesday after data signaled a solid economy, but investors braced for volatile trading this week as voting was underway in an extremely tight US presidential election. The Institute for Supply Management said its non-manufacturing purchasing managers index, a gauge of the services sector, accelerated to 56.0 last month, its highest since August 2022, from 54.9 the prior month and above the 53.8 expected by economists polled by Reuters. The election outcome could take days to be finalized as the latest polls showed the race between Republican Donald Trump and Democrat Kamala Harris, which has impacted markets in recent months, was too close to call. The former president’s odds improved on Tuesday in betting markets that many investors see as election indicators. “The market continues to try and price for what is the outcome of this election,” said Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle. “It’s been so tight and …we’ve been in a tight price range, and so what’s really moving us is marginal positioning for one result or the other.” “Both the bond market and the equity market are looking at Congress as important as well,” he added. “Most base cases are for divided government, but this election is so close we could get any outcome. That’s the challenge.” The Dow Jones Industrial Average rose 427.28 points, or 1.02%, to 42,221.88, the S&P 500 gained 70.07 points, or 1.23%, to 5,782.76 and the Nasdaq Composite gained 259.19 points, or 1.43%, to 18,439.17. Volatility was more pronounced in government debt and currency markets. The benchmark 10-year US Treasury note yield rose more than 10 basis points to a high of 4.366% before paring gains on a solid auction, and was last down 2 basis points on the day. Equity markets avoided Monday’s volatility on expectations of a soft landing for the economy, bolstered by corporate earnings, lower interest rates and a resilient labor market. Other economic data on Tuesday showed the trade deficit hit a 2-1/2 year high in September, as domestic demand draws in imports while concerns about higher tariffs under a Trump presidency have led to a front loading of imports by businesses. Still, the CBOE Volatility Index, also known as Wall Street’s “Fear Gauge,” closed at 20.49, above its long-term average of 19.46, although it had eased from a near-two month high hit last week of 23.42. Industrials, up 1.67%, and consumer discretionary , up 1.83%, led S&P 500 sectors higher and were among five to gain at least 1.3% on the session. Investors are also keeping an eye on Congressional elections to determine the balance of power in Washington. Many analysts predict a split government, which would limit the ability of the president to enact significant policy changes. Stocks viewed as proxies on a win for the former president experienced large swings, with Trump Media & Technology Group climbing as much as 18.64% and dropping as much as 8.42%, while also being halted for volatility multiple times. Its shares eventually closed down 1.16% on the session. Crypto stocks tracked bitcoin higher, with the cryptocurrency up roughly 3%, as Trump has positioned himself as an ally to the sector. Palantir surged 23.47% to close at a record $51.13 after the data analytics firm raised its annual revenue forecast for the third time. The Federal Reserve will announce its latest policy statement on Thursday. Markets have almost completely priced in a 25-basis point interest rate cut, but the outlook for the path of future easing is less certain given the U.S. economy’s strength. Advancing issues outnumbered decliners by a 4.44-to-1 ratio on the NYSE and by a 2.67-to-1 ratio on the Nasdaq. The S&P 500 posted 23 new 52-week highs and seven new lows while the Nasdaq Composite recorded 110 new highs and 104 new lows. Volume on US exchanges was 12.64 billion shares, compared with the 11.77 billion average for the full session over the last 20 trading days. — Reuters
