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Stock markets see volatility as Biden drops out of US presidential race

by | Jul 22, 2024

New Delhi: With US President Joe Biden dropping out of the 2024 race for the White House, stock markets worldwide, including in Asia, may see a volatile period ahead, experts said on Monday.

The news has injected uncertainty into the outlook for markets at an increasingly critical juncture.

Asia-Pacific stock markets fell this morning, with Japan’s Nikkei 225, South Korea’s Kospi and Australia’s S&P 200 slipping up to 0.5 per cent.

“Asian stocks fell after Joe Biden ended his reelection campaign and endorsed Vice President Kamala Harris. The question for investors is whether to stick with Trump trade now that Biden has dropped his bid for reelection,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Online betting site PredictIT showed pricing for a victory by Trump had fallen 3 cents to 61 cents, while Harris climbed 11 cents to 38 cents.

China’s central bank unexpectedly cut a key policy rate to support the country’s ailing economy, just days after a flurry of data showed that a lopsided recovery might have lost some steam.

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