Stock markets show volatile reaction amid Biden’s withdrawal
According to market experts, stock markets worldwide, including in Asia may see a volatile period ahead after US President Joe Biden drops out of the 2024 race for the White House.
The recent development in the political landscape has cast a shadow of uncertainty over the future trajectory of financial markets, arriving at a pivotal moment.
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 percent.
Indian equity indices opened in the red on Monday following weak global cues from Asian peers.
At 9:45 a.m., Sensex was at 80,501, down 89 points or 0.11 percent and Nifty was down 26 points or 0.12 percent, at 24,504.
UltraTech Cement, Infosys, NTPC, Nestle, Power Grid, HDFC Bank, Power Grid, Tech Mahindra, Tata Steel, ITC, and TCS are the top gainers in the Sensex pack. Wipro, Kotak Mahindra Bank, Reliance, L&T, JSW Steel, and ICICI Bank are the top losers.
Most of the markets in Asia are witnessing a decline. The markets of Tokyo, Shanghai, Seoul, and Bangkok are in the red. The markets of Hong Kong and Jakarta are in the green. American markets closed in the red on Friday.
“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 reelection bid,” 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.
“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 percent, deepening its weekly slump to 5.1 percent.
“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.
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