The choice of Tim Walz did not appear to move markets much ...
By 4:25 pm yesterday, the yield on the ten-year bond was at 4.38%, according to data from Bloomberg. No change from the reading when the market opened at 9:30 am. The KBW Bank Index ended at 104.73 up from 103.52 at market opening. The S&P Utilities Select Sector Index yesterday closed at 737.49, up from the 731.47 reported at the close on Monday.
Southern Power closed yesterday at $86.45, down slightly from the 5 August close of $86.57.
There was not much movement in currencies yesterday, at least in the euro dollar or dollar yen, the currencies of interest to the Federal Reserve and the Treasury Department when it comes to currency intervention. EUR/USD closed yesterday at 1.0931 up from the opening price of 1.0919.
I did not expect much impact from Kamala Harris' announcement of her pick for vice-president. Ms. Harris chose Minnesota governor Tim Walz as her running mate. On energy, Governor Walz is an advocate of clean energy given his stance on the importance of addressing climate change. In 2023, Governor Walz signed legislation requiring Minnesota's utilities be 100% carbon emissions free by 2040. Governor Walz also advocates for the transition of Minnesota communities from reliance on fossil fuels to the use of renewable energy sources.
In addition, Governor Walz supports removing Minnesota's ban on the construction of nuclear plants in Minnesota.
Governor Walz's position appears in line with the progressive elements of the Democratic Party. I expect further confirmation of the alignment after the Harris-Walz campaign publishes its issues and policy positions.
Alton Drew
7 August 2024
For more of my take on the American political economy, buy my book at amazon.com/author/altondrew.