President Joe Biden announced his withdrawal from the 2024 presidential race on Sunday, endorsing Vice President Kamala Harris to take on former President Donald Trump. This unexpected move has sent ripples through both political and financial landscapes globally.
Key Takeaways
- Biden withdraws from the 2024 presidential race, endorsing Kamala Harris.
- Mixed reactions in global markets, with some sectors experiencing gains and others losses.
- Uncertainty looms over the future political landscape of the United States.
Market Reactions
London Markets
Despite the significant political news, the London market showed resilience. The FTSE 100 finished 43.06 points higher, ending the day at 8,198.78. Airline firms, however, faced a downturn due to Ryanair’s report of a 46% drop in profits over the latest quarter.
European Markets
Elsewhere in Europe, the sentiment was more positive. The Cac 40 in France ended 1.16% higher, and Germany’s Dax index rose by 1.35%. Investors seemed to have digested the news over the weekend, showing little immediate impact from Biden’s decision.
Asian Markets
Asian stocks were mostly lower on Monday. Japan’s Nikkei 225 slipped 1.3%, while the Shanghai Composite index dropped 0.7%. The Hang Seng in Hong Kong, however, added 0.8%. The People’s Bank of China cut its one-year benchmark loan prime rate to boost slowing growth, which had mixed effects on the markets.
U.S. Markets
In the U.S., tech stocks helped drive a strong start to the week. The Nasdaq and S&P 500 both rebounded from a poor previous week, with companies like Tesla and Nvidia showing gains. However, the overall sentiment remains cautious as investors await the first Harris vs. Trump polls.
Political Implications
Biden’s withdrawal and endorsement of Kamala Harris have added a new layer of uncertainty to the upcoming election. Harris will now face former President Donald Trump, making the 2024 race one of the most anticipated and unpredictable in recent history.
Sector-Specific Impacts
Airlines
Airline stocks were notably lower, influenced by Ryanair’s profit warning. EasyJet and IAG saw significant drops, while U.S. airlines like United Airlines managed to flip initial losses into gains.
Technology
The tech sector showed resilience despite a major IT outage that disrupted various industries. Companies like Tesla and Nvidia saw gains, while cybersecurity firms experienced mixed results due to a faulty update from CrowdStrike.
Commodities
Oil prices saw a slight increase, with U.S. benchmark crude oil gaining 34 cents to $78.98 per barrel. Brent crude added 41 cents to $83.04 per barrel. The International Energy Agency pointed towards slower growth in oil demand this year, affecting market sentiment.
Conclusion
President Biden’s decision to withdraw from the 2024 race has created a ripple effect across global markets and the political landscape. While some sectors have shown resilience, others are grappling with the uncertainties that lie ahead. As the world watches, the upcoming Harris vs. Trump showdown promises to be a defining moment in U.S. history.
