European Shares Rebound Amid Biden's Election Exit and Market Shifts

European shares saw a resurgence at the start of the week, recovering from significant losses. Investors reflected on President Joe Biden's decision to exit the U.S. presidential race and his endorsement of Kamala Harris. Industry movements included Belimo's sales forecast increase and Ryanair's profit drop.

European shares started the week on a high note, bouncing back from previous substantial losses, as investors considered the effects of President Joe Biden's withdrawal from the U.S. presidential race.

The pan-European STOXX 600 index rose nearly 0.6% by 0716 GMT, recovering from its steepest weekly decline of 2024. Construction and materials sectors led the way with a 0.8% increase. Swiss heating and ventilation solutions maker Belimo jumped 12.5% after revising its sales forecast upward.

Meanwhile, President Biden's decision not to seek reelection and his endorsement of Vice President Kamala Harris as the Democratic candidate stirred market evaluations. Ryanair's share price plummeted 12.3% following a report of a 46% drop in quarterly profit, impacting the travel and leisure sub-index, which fell by 0.9%. Conversely, Rentokil Initial saw an 11.8% rise following reports of acquisition talks involving former BT chief Philip Jansen.

(With inputs from agencies.)