Asian stocks drop as China cuts rates, Biden drops out of election race, market reaction neutral.
From Caspian News: 2024-07-22 03:05:33
Asian stocks declined on Monday despite China’s central bank rate cut. People’s Bank of China cut short-term rates by 10 basis points. Investors underwhelmed as Chinese blue chips slipped 0.9%. MSCI’s Asia-Pacific index lost 0.7%. Japan’s Nikkei dropped 1.2% and South Korea’s index fell 1.3%. Taiwan lost 2.3% due to U.S. chip sale concerns.
News of President Biden dropping out of the election race to endorse Kamala Harris had markets calmly reacting. PredictIT showed Trump’s victory pricing down to 60 cents, Harris up to 39 cents. Nasdaq and S&P 500 futures nudged up. 10-year bond yields dipped.
Currency markets saw the dollar edge down. Euro edged up to $1.0886. Gold held at $2,406 an ounce. Oil prices inched up with no ceasefire in Gaza. Brent gained 44 cents to $83.07 a barrel, U.S. crude rose 41 cents to $80.54 per barrel.
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