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Every morning, in the time it takes to drink a coffee, Teddy walks through yesterday's markets: US indices, the Nikkei, gold, oil and Malaysia. What moved, and which way the pressure leans. Market education, not financial advice.
This is my AI voice. The script comes from my market research system, and a person checks it before it goes out. It's education, not personal investment advice.
Good morning. Teddy here.
Most people think an election is about who wins. For markets, it's about who pays. Last night gave us a clear example.
On Tuesday, Americans voted in the midterm elections. By Wednesday, the Associated Press projected that Democrats had won both the House and the Senate. That means the President now faces a Congress run by the other party. Divided government.
Markets often like divided government. The reason is simple. When two sides have to agree, big policy surprises become less likely. Less surprise means less risk, at least on paper.
So Wall Street rallied. The Dow closed up 1,569 points, or 3.03 percent, at 53,356. That was its best day since April 2025. The S&P 500 rose 1.58 percent. The Nasdaq Composite rose 1.44 percent. The VIX, the fear gauge, dropped about 20 percent to 16.61.
Now here's the part most headlines skip. Not everyone won.
Apple rose 5.31 percent. Microsoft rose 6.68 percent. But Nvidia fell 3.17 percent, and the chip sector fell 2.75 percent. Why? Investors worry that a Democratic Congress could bring tighter rules on artificial intelligence and slower spending on data centres. Trump Media fell close to 17 percent.
And in Asia, the reaction came earlier and looked different. Tokyo traded while the results were still coming in. The Nikkei closed down 1.42 percent at 62,188. Our own KLCI slipped 5.29 points to 1,616.56, as investors took profit in banks and telcos. Hong Kong went the other way, up 1.67 percent.
Same news. Three different reactions. That's the first lesson for today.
The second story is oil. And this one is big.
US crude fell 8.29 percent to 88 dollars and 12 cents a barrel. Brent fell 8.69 percent to 94 dollars and 60 cents. Energy stocks in the US fell 4.74 percent.
Why did oil fall so hard? Because traders started pricing in a possible end to the Iran war. The Vice President blamed the war for the Republican losses. Iran's chief negotiator said the result showed a rejection of the war. Traders heard that and sold oil.
But please notice something. Nothing was signed. On the same day, Iran's Revolutionary Guard said four oil tankers caught fire after hitting mines in the Strait of Hormuz. So the hope is in the price. The risk is still on the water.
If you trade oil, or even palm oil, keep that in mind. Palm oil futures fell too, by the way. The January contract dropped 55 ringgit to 4,496 ringgit a tonne, mostly on worries about record-high Malaysian stockpiles.
The third story is money looking for shelter. Gold rose 3.34 percent to 4,072 dollars an ounce. The US ten-year yield fell about six basis points to 4.89 percent. The dollar slipped to a one-month low. That helped the ringgit, which firmed to 4.0670 against the US dollar. Bitcoin rose 3.65 percent to about 80,600 dollars.
So what do we watch now? Two dates.
Tonight at 8pm Malaysia time, the Bank of England announces its rate decision. At 9:30pm, the US releases weekly jobless claims.
Then Friday night at 9:30pm Malaysia time, the US October jobs report. This one matters more than the election for interest rates. A strong number could push yields and the dollar back up. That usually weighs on gold. A weak number could bring rate cuts back into focus.
Let me put this in everyday terms. Many people see a big political headline and feel sure the market will love it. They buy. The index holds up fine. But the stocks they actually own go the other way. That kind of loss is not about a car. It can be the cost of a family holiday with the kids.
So what is the lesson? The headline tells you what happened. Your chart tells you whether it matters to you.
So today, keep it to three things.
One. Candles. Look at the candles on your own chart, not the headline.
Two. Direction. Ask which way the pressure is pointing for the market you trade. The Dow and the Nikkei got very different pressure from the same news.
Three. Momentum. Ask whether the move still has strength going into Friday's jobs report, or whether it is already tired.
Do those three. Size your risk before you enter. And let the market tell you the rest.
This is educational market commentary, not personal financial advice. No outcome is guaranteed. Markets carry risk of loss, so size your risk before any trade.
Survive first. See you tomorrow.