Joe Biden drops reelection bid, endorses Kamala Harris, impact on markets mixed

From BNN Bloomberg: 2024-07-21 23:10:00

Joe Biden dropped his reelection bid and endorsed Kamala Harris, leading to a slide in the dollar and a rise in Treasuries. The Chinese central bank cut a policy interest rate, boosting Chinese bond yields. Despite this, Chinese stocks fell alongside tech shares in Asia, while US equities futures rose.

China’s policy easing reflects the economic pressure and commitment to support growth, according to Societe Generale economist Michelle Lam. The US dollar weakened, Treasury yields dropped, as the Mexican peso gained and gold prices rose. Bitcoin hit a new high while investors weighed election uncertainty and Trump’s condition.

Asian markets face heightened scrutiny following Biden’s exit and an unpredictable political landscape. S&P 500 ended the week down, with tech shares falling before earnings reports. CrowdStrike Holdings Inc. faced a slump after system failures. Tesla and Alphabet will report earnings, focusing on robotaxis and AI revenue.

Chinese banks cut lending rates for the first time since 2023, stepping up support for economic growth. President Xi Jinping unveiled plans to boost local government finances. Market watchers will monitor economic data in Europe, US GDP, corporate earnings, and central bank decisions. Events include visits by Israeli PM Netanyahu and G20 meetings.



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