Investors React to U.S. Presidential Debate Amid Market Volatility

The U.S. presidential debate between Donald Trump and Kamala Harris drew attention but lacked specific policy details. Investors remained cautious with U.S. stock futures and Asian markets slipping. Taylor Swift's endorsement of Harris, PredictIt's betting odds, and looming U.S. inflation data further influenced market sentiments.

Investors broadly took the U.S. presidential debate between Donald Trump and Kamala Harris in stride, even though it was light on specific policy details and heavy on jabs. However, Taylor Swift stole the spotlight with her endorsement of Harris post-debate.

Asian markets weakened and U.S. stock futures dipped, with the dollar losing ground as both candidates debated over immigration, foreign policy, and healthcare. According to PredictIt, Trump's probability of winning fell to 48% from 52%, while Harris' odds rose to 56% from 53%.

Investors will remain on edge until the November election as they try to decipher the economic policies of both candidates. Attention has now shifted to the U.S. inflation report, keeping in mind the Federal Reserve's focus on employment. Market forecasts indicate a potential rate cut by the Fed, while upcoming economic data will be pivotal for European markets ahead of the European Central Bank meeting.

(With inputs from agencies.)