Europe close: Stocks rise as investors digest US election news
22nd Jul 2024 16:58
(Sharecast News) - European shares jumped on Monday as investors assessed the impact of US President Joe Biden's decision not to contest the election in November, while Ryanair shares slumped on lower earnings and a warning that summer airfares would be softer.
The pan-regional Stoxx 600 index was up 0.93% to 514.79 with all major bourses higher alongside.
Biden on Sunday dropped out of the race to be president and endorsed his running mate and Vice-President Kamala Harris to face Republican nominee Donald Trump.
"Investors have had a weekend to digest the moves in markets last week, when a rotation to small caps finally seemed to be upon us," said Chris Beauchamp, chief market analyst at IG.
"At present there seems to be little impact from Biden's decision to withdraw from the 2024 election, with investors likely waiting for the first real Harris v Trump polls to emerge. Until then, it seems a 'business as normal' mentality prevails, given that Trump is still riding high after the attempt on his life and the Republican convention."
Investors also have eyes on the Federal Reserve's preferred gauge of inflation, the Personal Consumption Expenditures (PCE) index on Friday and a flash reading of second-quarter GDP on Thursday.
In economic news, the People's Bank of China cut short term interest rates by 0.1%.
In equity news, shares in Swiss industrial firm Belimo Holdings gained more than 17% after a guidance upgrade for the full year.
Pest control company Rentokil soared 8% on a report that former BT boss Philip Jansen was plotting a takeover bid.
Ocado shares surged 12% after the online grocer and warehouse tech designer said US grocery giant Kroger ordered two of its latest technology solutions for its existing and future customer fulfilment centres.
Ryanair shares fell 17% after the budget airline said quarterly profit after tax had fallen 46% in the three months to the end of June, and fares will be lower than expected in the summer.