What will be the latest situation in the markets after Biden's withdrawal from the race?

US President Joe Biden, who was the Democratic Party's candidate for the November elections in the US and whose health status had recently become a subject of debate regarding whether it would allow him to continue his presidency, announced that he has withdrawn from the race.

Investors will carefully monitor the impact of President Biden's decision to withdraw from the race on Trump's chances in the election.

According to a report on Bloomberg HT, gold, a safe haven, including the US dollar, has the potential to gain value amidst the new political turmoil in the US. Analysts also believe there is a possibility that the Democratic Party will complete the transition process smoothly.

The increasing probability of Trump's re-election in the upcoming US presidential elections has caused concerns in global markets that trade wars could restart.

Analysts stated that some bond investors are also concerned that the policies Trump would implement in his second term would cause high inflation and increase fiscal deficits.

Trump, who imposed tariffs on 200 billion dollars worth of products imported from China in 2018 when he was president, plans to impose a 60 percent customs duty on Chinese-origin goods and a 10 percent customs duty on goods imported from other countries if he takes office for a second time.

If Trump returns to the White House, there is a risk that trade tensions will increase not only with China but also with the European Union (EU). Trump complains that the EU does not buy US cars and agricultural products, pointing to a trade deficit of over 200 billion dollars.

Aluminum and steel tariffs, along with the Digital Services Tax, stand out as trade disputes that could flare up again with Europe if Trump takes office.

News Source: 12punto