New Delhi: Experts warned on Monday that financial markets worldwide, particularly those in Asia, may experience volatility as US President Joe Biden withdraws from the 2024 presidential contest.
The announcement has added uncertainty to the market outlook at a moment when it is becoming increasingly significant.
Asia-Pacific stock markets saw a decrease this morning, with the Nikkei 225 in Japan, the Kospi in South Korea, and the S&P 200 in Australia all down by up to 0.5%.
“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 that pricing for a Trump victory 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.
“China released a policy document on Sunday, outlining known ambitions, from developing advanced industries to improving the business environment, with analysts spotting no sign of imminent structural shifts in the world’s second biggest economy,” said Jasani.
The US stock market finished down on Friday, with the tech sector under pressure last week.
The S&P 500’s tech sector fell a sharp 1.3 per cent, deepening its weekly slump to 5.1 per cent.
“The market is expected to remain volatile. Hold your positions with a trailing stop-loss. Any dip will be a buying opportunity as the overall trend remains bullish,” said analysts.
–IANS
