The FTSE 100 and European stock indexes bounded upwards on Monday morning, following the news that President Joe Biden will step back from running for the next US elections, paving the way for his VP Kamala Harris on the Democratic ticket.
The FTSE 100 (^FTSE) rose 0.9% by market open in the US, while the DAX (^GDAXI) was 1.5% higher in Germany and the CAC (^FCHI) ticked 1.4% higher.
The pan-European STOXX 600 (^STOXX) was up 1.2%.
London's premier index was pushed up by news that business bosses are mulling a Rentokil takeover. Gambling stock Entain also rose 3.5% in early trade after it named Gavin Isaacs as its new CEO.
Over in the US, the S&P 500 (^GSPC) rose 0.6%, the Dow (^DJI) ticked 0.3% into the green and the Nasdaq (^IXIC) jumped 1% shortly after the opening bell.
Investors are surveying a changed political landscape after Biden called off his reelection bid on Sunday and backed his vice president, Kamala Harris, to replace him as the Democratic nominee. The political shock could inject more volatility into an already battered stock market, distracting focus from this week's flood of earnings and key inflation release.
Biden's move, while not unexpected after weeks of pressure, is seen on Wall Street as eroding the odds of Republican contender Donald Trump securing a return to the White House.
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