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Markets lean toward Harris, Bitcoin slides, CPI in focus
Betting markets shifted in favor of Harris, Dollar and Bitcoin drop following the first debate between Harris and Trump over topics that lacked clarity over important regulations.
Debate heightened market uncertainty as key topics like tariffs, taxes, and regulations remained vague.
Trump’s tax cuts may boost profits but risk inflation; Harris favors corporate tax hikes.
Gold prices remained stable, awaiting CPI data that could determine a 25-50 basis point rate cut.
Bitcoin - USD
The US dollar slipped during European trading on the back of a heated presidential debate between Kamala Harris and Donald Trump. The debate added to market uncertainty as much of the planned topics were not discussed pressuring markets.
Harris led in polls following the debate, but both candidates left out many details to do with critical issues such as tariffs, taxes, and regulations.
However Trump has promised to cut corporate taxes and adopt a more aggressive approach to tariffs, which could boost corporate profits but risk driving inflation higher. Harris, on the other hand, has proposed increasing corporate taxes, a move that, while possibly curbing inflation, could negatively impact company earnings.
Bitcoin's price dropped more than 1.5% below the critical level of $58k to hover around $56,258. reflecting a broader sell-off in risk-sensitive assets. The debate added pressure on cryptocurrencies as they left key regulations topics uncertain.
Gold
Gold prices were under pressure, hovering in a tight range ahead of CPI figures that will have the final say over a 25 or 50bp rate cut. Prices were unable to break the 2,527 and hovered sideways between 2,518 -2,521.
Although the yearly CPI is expected to drop from 2.9% and much closer to the Feds target (2%) at 2.6%, The yellow metal lacked momentum ahead of the news.
