Investors react to heated presidential debate between Trump and Harris By Reuters

(Reuters) – U.S. futures fell and the dollar fell in early Asian trade on Tuesday as Republican Donald Trump and Democratic Vice President Kamala Harris faced off for the first time, with some analysts saying Harris had the better performance.

Online prediction market PredictIt’s 2024 presidential general election market showed Harris’ chances improving to 55% from 52% immediately before the debate, while Trump’s chances fell to 47% from 51%.

Stock futures eased as the debate progressed, with E-minis down 0.4 percent and E-minis down 0.5 percent.

The dollar index, which measures the US currency’s strength against six major peers, fell 0.2 percent.

COMMENTS:

STEVE SOSNICK, CHIEF MARKET STRATEGIST, INTERACTIVE BROKERS, GREENWICH, CT.

“Everything was pretty general during the debate. They talked about chips and energy and solar, but not really specifics. There was nothing for the markets to sink their teeth into.”

“Because the margin is so narrow, I think the markets don’t know what to make of the whole campaign at this stage. It looks like Harris is ahead of Trump, but I don’t know that the markets have voted yet. And I don’t know if the people who have to either convinced they are watching. We may see a bigger reaction when the highlights of this debate begin to spread and be discussed in the coming days.”

ROB CARNELL, ING’S REGIONAL HEAD OF RESEARCH FOR ASIA-PACIFIC

“I don’t think there’s much for the markets here … there doesn’t seem to be much that looks particularly economic right now. I think Harris seems to be handling Trump pretty well.”

“You would expect, if he (Trump) were to do better, you would see a strong dollar coming out of that. So I guess that’s how the market sees it. It’s a slight nod to Harris.”

KEN CHEUNG, DIRECTOR, FX STRATEGY, MIZUHO SECURITIES ASIA, HONG KONG

“Part of the movement of the US dollar is driven by the performance of the debates. I think the interpretation, for , is that it’s very sensitive to Trump’s tariff policy.”

JACK ABLIN, CHIEF INVESTMENT AT CRESSET CAPITAL.

“This debate doesn’t seem to change the fact that it’s going to be a very close election.”

“They cover all issues; the moderators do a good job of managing the debate, and voters get a pretty good introduction to the policies and temperaments of both candidates.”

“But perception is reality, and if people don’t feel like their lives are getting better, that’s going to shape their behavior in November.”

KARL SCHAMOTTA, CHIEF MARKET STRATEGIST AT CORPAY IN TORONTO

“No knockout punch landed, but dollar slips as Kamala Harris opens marginal lead over Donald Trump in prediction markets.”

“Currencies that could find themselves on the front lines of another trade war — the Mexican peso, the Canadian dollar and the Chinese renminbi — are advancing amid subdued volumes.”