Global commodities trade mixed, currencies shift after US midterm elections

Global commodity prices and major currencies saw sharp movements on Thursday as US midterm election results weighed on oil prices and the dollar.

International oil benchmarks came under heavy selling pressure, with Brent crude falling below $94 per barrel to a two-month low before trading at $94.33 at 0608GMT.

US benchmark West Texas Intermediate crude also slipped to $86.66 per barrel before recovering to around $87.34.

The declines followed US midterm elections in which Democrats secured majorities in both the Senate and House of Representatives, ending Republican control of Congress.

Democrats also won several gubernatorial races, including in Texas, where Gina Hinojosa defeated Republican Gov. Greg Abbott, ending more than three decades of Republican control of the governor's office.

Trump said he was willing to accept the election results and expressed readiness to work with Democrats, easing concerns about prolonged political uncertainty.

Investors viewed the outcome as a potential constraint on Trump's trade, fiscal and foreign policies, particularly amid mounting economic pressure from the US-Israeli war with Iran.

Lower energy prices are expected to ease global inflationary pressures, reducing concerns about potential near-term interest rate hikes by central banks.

Meanwhile, the US dollar index fell to 101.06, extending losses from the previous session as investors assessed the new political landscape in Washington.

The weaker dollar lifted the euro to $1.1263, its highest level since early October.

The single currency also drew support from European inflation data, which showed annual inflation accelerating to 4.0% in October, its highest level since September 2023, driven by rising energy costs.

Signals from European Central Bank officials further supported the euro, with policymakers pointing to possible future interest rate hikes to curb wage-driven inflation.

Precious metals also rallied on dollar weakness and declining US Treasury yields.

Gold climbed toward $4,150 per ounce, reaching a two-week high before trading at $4,134 at 0608GMT.