Asia stocks drop despite China rate cut, Biden bows out of race

From Investing: 2024-07-22 01:37:30

Asian shares fell despite a rate cut by China’s central bank. Beijing’s economy ambitions highlighted concerns about weakness. Chinese blue chips dropped 0.9% and the yuan followed suit. Investors were underwhelmed but understood the need for stimulus. Asia-Pacific shares outside Japan lost 0.7% while Taiwan faced U.S. chip restrictions.

President Biden’s exit from the election race benefitted Vice President Kamala Harris. PredictIT showed a decline in betting for Trump and a rise for Harris. Markets remained stable, with stock and bond futures edging up. EuroSTOXX 50 futures added 0.5%.

This week brings a wave of corporate earnings from Tesla, Alphabet, General Electric, General Motors, Ford, and Lockheed Martin, among others. Tech and communication sectors are expected to perform well, with year-over-year earnings growth projected at 17% and 22%, respectively. Europe’s banks and economic data, including GDP and inflation figures, are also eagerly anticipated.

In the currency market, the dollar slightly retraced last week’s gains against the euro. Gold held steady at $2,406 an ounce, short of its record high. Oil prices rose amid the lack of progress on a Gaza ceasefire, with WTI at $83.07 a barrel and Brent at $80.54 per barrel.



Read more at Investing: Asia stocks skid as China trims rates; Biden steps aside By Reuters