Key events
Introduction: Trump trade drives dollar rally and gold hits record high; Lloyds beats profit expectations
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The dollar has rallied, boosted by strong economic data and investors betting that Donald Trump can clinch next month’s presidential election, while gold prices hit a new all-time high amid rising geopolitical tensions in the Middle East.
The dollar is up again today, as markets shortened the odds of a second Trump administration. Strong US jobs figures earlier this month drove investors to scale back their expectations for Federal Reserve rate cuts, also lifting the currency. The dollar index – which measures the US currency against six other major currencies – rose to 104.17, the highest since early August.
Gold prices have hit a fresh record as the conflict in the Middle East along with uncertainty around US interest rates and the US election fuelled demand for safe-haven assets.
Spot gold climbed to $2,752 an ounce, while silver prices also rose, by 3% to $34.78 an ounce.
Over here, Lloyds Banking Group, Britain’s biggest mortgage lender, predicted higher house prices as it reported third-quarter profits ahead of expectations. Chief executive Charlie Nunn credited income growth, cost discipline and strong asset quality.
It made a statutory pre-tax profit of £1.8bn between July and September, down a smidgen from £1.9bn a year ago, but above City forecasts of £1.6bn.
The bank has raised its forecast for UK house prices to rise by 3.1% this year, compared with an earlier prediction of 1.9%.
The Agenda
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Noon BST: US MBA Mortgage applications
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2.45pm BST: Bank of Canada interest rate decision
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3pm BST: European Central Bank president Christine Lagarde speech
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3pm BST: Eurozone Consumer confidence flash estimate for October