Biden Exits Presidential Race, Endorses Harris

In a surprising turn of events, President Joe Biden has announced that he is dropping out of the Presidential race. He has officially endorsed Vice President Kamala Harris as his preferred candidate for the upcoming election. This endorsement is likely to shift the dynamics of the race significantly and could have broad implications for both domestic and international policies.

PBoC Cuts Reverse Repo Rate

The People’s Bank of China (PBoC) caught markets off guard by cutting its 7-day reverse repo rate by 10 basis points. This unexpected move is part of the central bank’s efforts to stimulate the economy and combat deflationary pressures. Investors will be closely monitoring the impact of this rate cut on the Chinese economy and global markets.

APAC Stocks Begin Week on Weak Note

Asian-Pacific (APAC) stocks mostly started the week on a negative note, continuing the downward momentum from last Friday’s selling pressure on Wall Street. Concerns over global economic conditions and market volatility have weighed heavily on investor sentiment in the region.

European Equity Futures Point to Higher Open

Despite last Friday’s 0.9% decline in the Euro Stoxx 50 index, European equity futures are indicating a higher open, with Euro Stoxx 50 futures up 0.5%. Investors in Europe are looking for a rebound after a challenging end to the previous week.

DXY Steady, EUR/USD Stable, Antipodeans Lag

The US Dollar Index (DXY) remains steady and is trading within a tight range. The EUR/USD pair is holding at the 1.08 level, showing relative stability. However, currencies from the antipodean region, including the Australian and New Zealand dollars, are lagging behind, reflecting broader market uncertainties.

Key Economic Data Ahead

Looking ahead, one of the key highlights will be the release of German Retail Sales data. This economic indicator will provide insights into consumer spending in Germany, which is a critical component of the Eurozone economy. Investors will be paying close attention to this data to gauge the health of the European economy.

The week ahead is filled with significant developments that could shape market movements. From political shifts in the US to monetary policy changes in China, and key economic data from Europe, investors have plenty to watch. Stay tuned for further updates and analyses as these events unfold.