Harris hits the campaign trail as donors pour in to stop Trump

US Vice President has secured enough delegates to clinch the Democratic Presidential nomination as she looks to unite the party ahead of the Election in November.

With no challengers emerging, Associated Press has reported that she passed the threshold of 1976 delegates to run for the white house. Harris has received support from key representatives in Washington including former house speaker Nancy Pelosi. In just 24 hours since Biden stepped aside from his bid, Harris has raised more than $81M in contributions, more than Biden raised in the first two months of his own campaign.

Politics aside, Megacap tech stocks which have dominated the Nasdaq & S&P gains over the past year have fallen as traders price in the suggested rate cut from the Federal Reserve in September. Investors are instead seeing appeal in smaller companies which tend to have higher debt burdens than larger firms, therefore a cut in base rates has appeal for these stocks.

Meanwhile, Sterling continues to be flavour of the year amongst G10 currencies as Europe’s largest asset manager Amundi SA invests into the Pound seeing political stability taking away risks, leading to gains of potentially $1.35 come year end. However, JP Morgan goes against this sentiment and warns that Sterling is overvalued with fund manager M&G also in agreement. The Fed is now projected to cut rates ahead of the BoE in September with the ECB all but confirmed for a cut in October.

The conservative parties 1922 committee announced that its leadership campaign will take place on November 2nd leaving leader Rishi Sunak in power until then. Former immigration minister Robert Jenrick is the current front runner for the leadership contest, the former cabinet member who quit as a result of Sunak’s failed ￡700m Rwanda campaign is set to woo Tory members with his tough stance on immigration.

With no major market data releases attention will focus on G20 meetings in Brazil, where finance leaders will discuss the impact of conflicts in Ukraine and Gaza on the global economy. We do have Eurozone consumer confidence released today alongside US home sales, however we expect little market reaction to these figures.