Investors generally took a good look at the US presidential debate between Donald Trump and Kamala Harris, where details were few but spikes were plentiful. But the spotlight belonged to Taylor Swift, who immediately after the debate supported Harris, Reuters comments.
Asian markets were broadly lower and U.S. stock futures fell, with the dollar falling as the two candidates clashed on issues including immigration, foreign policy and health care, but the debate was poor on specific policies. details.
Online prediction market PredictIt for the 2024 presidential general election showed that Trump’s probability of victory fell after the debate, to 48% from 52%. Harris’ odds improved to 56% from 53%.
All this meant that investors will remain nervous until the November election, as they try to gauge the economic policies of both candidates and ascertain who might still win.
Interest shifts
Market focus now shifts to the US inflation reading later in the day, although the US central bank has made it clear that employment has been given more emphasis than inflation.
While the Federal Reserve is likely to cut interest rates next week, there is considerable uncertainty surrounding the size of the cut. Markets are pricing in a one in three chance of a 50 basis point cut and expect 114 basis points of easing this year.
Futures indicate European markets are expected to open lower as traders, without much economic data during the day, are likely to focus on Fed moves ahead of Thursday’s European Central Bank meeting, where it is expected to cut interest rates. interest rates.
Meanwhile, the yen surged to an eight-month high following a boost from Bank of Japan board member Junko Nakagawa, who reiterated in a speech on Wednesday that the central bank would continue to raise interest rates if the economy and inflation move according to its forecasts.
Key developments that could influence markets on Wednesday are the UK Industrial and Manufacturing Production data for July and the US Inflation Report.
SOURCE: ot.gr
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