World shares steady as Biden exits election race

by Jonathan Adams
Joe Biden

Markets took the news in stride, with MSCI’s gauge of stocks across the globe 0.75% higher at 816.92

An index of global shares steadied on Monday as investors weighed President Joe Biden’s decision to end his reelection bid over the weekend, while a surprise rate cut by China’s central bank failed to uplift markets.

Biden announced on Sunday he would drop out of the U.S. presidential election race and endorsed Vice President Kamala Harris for the Democratic ticket to challenge former President Donald Trump, who is the Republican nominee.

Markets took the news in stride, with MSCI’s gauge of stocks across the globe 0.75% higher at 816.92. The index dropped 2.1% last week in its worst weekly performance since April.

I think largely the Biden bailing out was priced in; we just needed definitiveness on that, said Lou Basenese, president and chief market strategist at MDB Capital in New York. Now you are seeing the Trump trades, more risk taking, and small caps, going long oil and gas, and bitcoin really returning to the market.

The dollar was marginally up against other major currencies, capturing some safe-haven flows, while bitcoin – which has tended to be a beneficiary of any growing chances of a return of Trump to the White House – stabilised after having dropped on Sunday following Biden’s announcement.

The dollar index added 0.1% to 104.32, with the euro 0.07% higher at $1.0885. Bitcoin, which reached six-week highs last week in its strongest weekly rally since February, traded on a more even keel on Monday, up 1.76% at $68,158.

On Wall Street, all three major indexes ended higher, led by gains in technology and communication services stocks. Nvidia ended up almost 5%, boosted by news it is working on a new AI chip for the Chinese market.

The Dow Jones Industrial Average added 0.32% to 40,415.44, the S&P 500 advanced 1.08% to 5,564.41 and the Nasdaq Composite rose 1.58% to 18,007.57.

Investors will be eying a packed week of corporate earnings. Tesla and Google parent Alphabet start the season for the “Magnificent Seven” megacap group of stocks.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Trading and Investment News. The information provided on Trading and Investment News is intended for informational purposes only. Trading and Investment News is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Related Posts

    Sign up for our newsletter

    Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

    © Copyright 2024-25
    Trading and Investment News.
    Managed By News Media International A Brand Of CAS Media Group Publishing Ltd whose registered office is – 12 Deer Park Road, Wimbledon, SW19 3TL.

    Latest articles