Digesting Biden exit, markets focus on earnings, data

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July 23 - World markets steadied on Tuesday as investors looked beyond Joe Biden's exit from the U.S. presidential race, turning their focus to corporate earnings and economic data.

Investors will now focus on whether the polls show a closer race against Trump than when Biden was the Democratic candidate, Brown said. That tracked a broader rebound in chipmaking shares and recovering some of the $100 billion in market value that was wiped off TSMC , the world's largest contract chipmaker, over the previous few sessions following Trump's comments on Taiwan.

Big movers in premarket trading on the back of earnings so far on Tuesday included Spotify , which leapt around 14%, and United Parcel Services , which slumped over 10%. Chinese stocks recorded their biggest single-day drop in six months , copper prices dropped to their lowest in 3-1/2 months, while Australia and New Zealand's currencies, often seen as liquid proxies for the Chinese yuan, also fell. Focus remained on central banks. Markets have priced in two U.S. rate cuts this year with the first in September, but expectations could be ruffled by growth and consumer price data due later in the week.

On Friday, the core personal consumption expenditures index, the Fed's preferred inflation measure, is seen rising 0.1% in June, pulling the annual pace down a tick to 2.5%.

 

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