European Markets Open with Gains as President Biden Exits 2024 Race, Asian Shares Mostly Fall

European markets opened with gains on Monday after President Joe Biden announced his withdrawal from the 2024 presidential race, while Asian shares mostly fell, adding to uncertainties in the global economy.

Biden’s decision to exit the race and endorse Vice President Kamala Harris to take on former President Donald Trump did not have a significant impact on financial markets, according to Stephen Innes of SPI Asset Management. Despite the news, U.S. yields and the dollar opened slightly weaker in Asia but then rebounded, indicating that investors were prepared for this outcome.

Meanwhile, most of the disruptions from a massive technology outage that occurred on Friday appeared to have been resolved over the weekend, providing some relief to the markets.

In European trading, Germany’s DAX rose 0.8%, the CAC 40 in Paris gained 0.8%, and the FTSE 100 in London added 0.5%. Futures for the S&P 500 and the Dow Jones Industrial Average also showed gains.

However, in Asian trading, Japan’s Nikkei 225 slipped 1.2%, while the Hang Seng in Hong Kong added 1.3% and the Shanghai Composite index dropped 0.6% after China’s central bank unexpectedly lowered its one-year benchmark loan prime rate.

The People’s Bank of China’s decision to cut the loan prime rate aims to boost slowing growth and address a prolonged property slump, following a report of slower-than-forecast economic expansion in the second quarter.

Elsewhere in Asia, Australia’s S&P/ASX 200 dipped 0.5% and South Korea’s Kospi lost 1.1%.

The previous week saw the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all posting losses, with the major outage disrupting flights, banks, and other services worldwide. Cybersecurity firm CrowdStrike clarified that the issue was not a security incident or cyberattack but rather a faulty update sent to computers running Microsoft Windows.

In early trading on Monday, U.S. benchmark crude oil remained unchanged, while Brent crude added 7 cents per barrel. The U.S. dollar fell against the Japanese yen but rose against the euro.

Overall, the global markets continue to navigate through uncertainties, with investors closely monitoring developments in the political and economic landscape.