The U.S. dollar wavered on Monday morning while Treasury yields recovered and European stocks rose following President Joe Biden’s announcement that he would be ending his re-election campaign.
U.S. 10-year Treasuries declined three basis points to 4.21% while the benchmark Stoxx Europe 600 advanced by 0.6%, thereby recovering from its 2.7% decline over the course of last week. U.S. futures climbed marginally higher, with those on the S&P 500 edging 0.2% higher. Nasdaq 100 futures rose by 0.4%, while those on the Dow Jones Industrial Average were little changed.
Despite Biden’s announcement, investors’s market outlooks appear to be minimally affected by politics. “We are more focused on the cadence of the business cycle than on the outcome of the election,” Morgan Stanley strategist Michael Wilson confirmed. A new Democratic presidential candidate will need to be selected before the party’s convention on August 19.
Against the dollar, the euro remained stable at $1.0886. The pound rose 0.1% against the greenback to $1.2928, while the Japanese yen went up 0.6% against the US currency to 156.49 per dollar. The Bloomberg Spot Dollar index remained relatively unchanged. In contrast, the U.S. dollar remained strong against cryptocurrencies, with Bitcoin falling 0.6% to $67,304.73 while Ether also slumped by 0.6% to $3,476.55.