The China Mail - Stocks take Biden exit from White House race in stride

Biden on Sunday gave in to weeks of calls for him to step aside in the wake of a poor debate performance that amplified questions about his health, and endorsed Vice President Kamala Harris to succeed him.

The news has left traders wondering who will go head to head with Donald Trump in the battle to lead the world's biggest economy, although Harris is now seen as the frontrunner to be the Democratic candidate.

"We had, of course, enormous political news. But I don't know that that's really what's driving things right now," said Steve Sosnick of Interactive Brokers. "I think this is some bargain hunting after a rough week."

Stocks fell heavily at the end of last week following a crash in global computer systems that hit airports, airlines, trains, banks, shops and even doctors' appointments.

It came at the end of a week where tech stocks had already taken a beating on a growing "Trump trade" as investors worried that the Republican nominee will ramp up a trade dispute with China.

Despite growing expectations last week that Biden would pull out of the race, the move has added doubts that could create further volatility in markets, with second quarter earnings from tech companies in the coming weeks also a source of uncertainty.

Briefing.com analyst Patrick O'Hare said "uncertainty has not permeated the marketplace, at least not in an adverse way", with tech stocks with large capitalisation rebounding following their losses earlier in the week.

Shares in Microsoft, Google and Nvidia were all higher in late morning trading.

Tech stocks have largely driven the record-setting rally on enthusiasm for artificial intelligence and investors will be scrutinising the performance of firms.

Europe's major stock markets closed the day higher, led by Paris and Frankfurt which each gained more than one percent, while most Asian markets ended lower.

The dollar initially rose after Biden's announcement but gave up its gains against the euro and pound.

- Ryanair dives -

Ryanair's share price slumped 16 percent Monday, which is also the start of Britain's Farnborough airshow .

The Irish no-frills carrier warned that despite rising passenger demand for its routes across Europe, revenue would continue to suffer from lower -than-expected airfairs.

"While travel demand has bounced back since the pandemic, travellers are reluctant to book too far ahead," said Dan Coatsworth, investment analyst at AJ Bell.

He cited "high interest rates" and passengers "holding out for a bargain" as likely reasons Ryanair and rival carriers have been forced to lower prices in the peak summer season.

Elsewhere, there was little reaction to news that China's central bank had cut borrowing costs as leaders look to kickstart the world's number two economy, which has been hammered by a huge property crisis and weak consumer demand.

The Bank of China lowered the one-year and five-year loan prime rates in a bid to encourage commercial banks to grant more credit.

- Key figures around 1530 GMT -

New York - Dow: UP less than 0.1 percent at 40,303.43 points

New York - S&P 500: UP 0.5 percent at 5,533.35

New York - Nasdaq Composite: UP 0.7 percent at 17,853.15

London - FTSE 100: UP 0.5 percent at 8,198.78 (close)

Frankfurt - DAX: UP 1.3 percent at 18,407.07 (close)

Paris - CAC 40: UP 1.2 percent at 7,622.02 (close)

EURO STOXX 50: UP 1.5 percent at 4,897.44 (close)

Tokyo - Nikkei 225: DOWN 1.2 percent at 39,599.00 (close)

Hong Kong - Hang Seng Index: UP 1.3 percent at 17,635.88 (close)

Shanghai - Composite: DOWN 0.6 percent at 2,964.22 (close)

Euro/dollar: DOWN at $1.0884 from $1.0885 on Friday

Pound/dollar: UP at $1.2915 from $1.2914

Dollar/yen: DOWN at 157.01 yen from 157.47 yen

Euro/pound: UP at 84.28 pence at 84.27 pence

West Texas Intermediate: DOWN 0.3 percent at $79.87 per barrel

Brent North Sea Crude: DOWN 0.5 percent at $82.18 per barrel

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