Biden vs. Trump debate: what Australian investors should know

In their first debate (11am Jun 28, Sydney Time), President Joe Biden and former President Donald Trump will face intense scrutiny over their age and stamina. Unlike Australia's federal election debates, which are considered ineffective and have minimal impact on voter decisions, the United States election debates are highly consequential, drawing massive viewership and significantly influencing voter opinions. At 81 and 78 respectively, their ability to handle another term is a key voter concern. The 90-minute debate in Atlanta, without a live audience, will focus on policy differences and personal fitness, with strict rules ensuring an uninterrupted comparison. This pivotal moment could shift the tight race as voters begin to decide.

Back in September 2020, following a chaotic first presidential debate between Trump and Biden, the Australian stock market experienced a significant drop, losing around $40 billion in market value due to heightened investor concerns about the U.S. election outcome. Despite initial gains from positive Chinese economic data, all ASX sectors saw heavy losses, with ASX200 down 2.3% and oil stocks leading the decline.