Equities mixed, dollar rises following Wall Street record

Traders struggled to extend gains on Wall Street, where the Dow reached its first record since May, while the dollar gained with Treasury yields on speculation that another Trump tariff battle with China and likely tax cuts could push inflation higher

Markets wavered Tuesday as growing expectations that Donald Trump will return to the White House played up against fresh hopes that the Fed will cut interest rates at least once this year.

Traders struggled to extend gains on Wall Street, where the Dow reached its first record since May, while the dollar gained with Treasury yields on speculation that another Trump tariff battle with China and likely tax cuts could push inflation higher.

Recent polls show the former president's chances of beating incumbent Joe Biden have soared since the assassination attempt on him at the weekend, while his choice of JD Vance as his running mate suggests a continuation of the America First programme.

Increased market confidence after Saturday's failed assassination attempt that Donald Trump will be re-elected president in November has been reflected in market movements across US Treasuries, equities and currencies since the weekend, according to Ray Attrill at National Australia Bank.

The US yield curve is steeper, the dollar modestly up and energy and banking stocks leading the charge in the S&P500, he said.

While the Dow led gains in New York, Asia investors were a little more cautious.

Hong Kong declined more than 1% owing to further losses in the tech sector, while Sydney, Singapore, Manila, Bangkok and Jakarta also dropped, though Tokyo, Seoul, Wellington, Taipei and Mumbai rose.

Shanghai was marginally higher with traders awaiting policy measures from China's leaders as they hold a key economic meeting this week.

London, Paris and Frankfurt were down.

There was some support after Federal Reserve chief Jerome Powell reiterated comments pointing to a possible rate cut following a recent run of positive figures on inflation.