Markets shrug Biden exit

Joe Biden exits race and endorses Harris but markets are yet to show a reaction

By Nadia Elbilassy | @Nadia Elbilassy | 22 July 2024

Market open
  • Asian stocks fall; Chinese bonds dip after PBOC rate cut.

  • Trump: Harris easier to beat than Biden.

  • S&P 500 in focus as Alphabet Q2 report approaches; PCE report awaited.

On Sunday, Biden announced his exit from the race and endorsed Vice President Kamala Harris as the Democratic candidate for the November election. Harris swiftly gained support from many within the party, though some high-profile figures, including former House Speaker Nancy Pelosi, remained silent.

Markets anticipated a stronger reaction to Biden's decision to end his re-election campaign. The dollar showed little change, easing slightly, while gold prices remained flat, holding near $2,402.

Asian stocks fell too amid political uncertainty whilst Chinese bonds slipped after PBOC cut its key repo rate for the first time in a year.

Focus will not focus on who will be her running mate in the shortest US presidential bid as a democrat whilst Trump said that Harris would be easier to beat than Biden.

In other market news, the S&P 500 will be at the front and center, as Alphabet will announce its quarterly report for Q2 2024, the EPS will have the capacity to dent the current bull run if it misses estimates.

Other important data will include the June PCE report that will shed more light on inflation, as the YoY PCE is expected to decline from 2.6% to 2.5%.