Prepared for Biden‘s withdrawal from the race for the Democratic nomination for U.S. president were investors who reacted positively to Vice President Kamala Harris‘s endorsement.
Markets responded positively to the development with S&P 500 stock futures up 0.1% and Nasdaq futures up 0.2%.
Futures for 10-year Treasuries also rose while 10-year bond yields fell 1 basis point to 4.23%.EUROSTOXX 50 futures and FTSE futures rose 0.2%.
“Some polls show Harris outperforming Biden over Trump, and Democrats are hoping that the next polls will show a Harris-led rise,” ANZ analysts said.
Tellingly, online betting website PredictIT showed bets on Donald Trump’s victory losing 4 cents at 60 cents, while Harris was up 12 cents at 39 cents.
Asian stocks slid again on Monday, getting a small boost from a surprise interest rate cut by China’s central bank.
The People’s Bank of China cut short-term interest rates by 10 basis points, which dragged down long-term borrowing costs and bond yields.
The move followed Beijing’s publication on Sunday of a policy document outlining its ambitions for the economy.
