Cruz tops Trump in Iowa polls, Clinton and Sanders tie

Republican Senator Ted Cruz beat billionaire Donald Trump in Iowa on Monday while Democrats Hillary Clinton and Bernie Sanders remained virtually deadlocked in the first presidential nominating contests of the 2016 White House race.

Cruz, a conservative lawmaker from Texas, won with 28% of the vote compared to 24% for businessman Trump in the Republican contest. Marco Rubio, a US senator from Florida, came in third with 23%, easily making him the leader among establishment Republican candidates.

Clinton, a former secretary of state, and Sanders, a self-described democratic socialist US senator from Vermont, both came in at roughly 50% with 95% of the state's precincts reporting results. Sanders declared the results a tie.

Former Maryland Governor Martin O'Malley, who had trouble gaining any traction in the Democratic race, suspended his campaign. He took third place with less than 1%.

"Tonight is a victory for courageous conservatives across Iowa and all across this great nation," Cruz, 45, said during a victory speech that lasted more than 30 minutes.

Trump, 69, congratulated Cruz and said he still expected to win the Republican nomination for the November 8 election.

"I'm just honoured, I'm really honoured," Trump told supporters. He said he looked forward to the next contest next week in New Hampshire, where polls show him ahead.

Clinton, 68, said she was breathing a "big sigh of relief" after the results. She lost to then-Senator Barack Obama in 2008. The former first lady congratulated Sanders and did not declare victory in her remarks.

"It is rare that we have the opportunity we do now to have a real contest of ideas," she said.

Sanders, 74, said he and Clinton were in a "virtual tie" and said he was overwhelmed.

"Nine months ago, we came to this beautiful state, we had no political organization, we had no money, we had no name recognition, and we were taking on the most powerful political organization in the United States of America,” he said.

Momentum shifts

The results could shift momentum in both races. Clinton hoped for a strong finish against Sanders to vanquish his insurgent candidacy. Sanders is leading in opinion polls in New Hampshire.

The results could have ramifications going forward.

Former Arkansas Governor Mike Huckabee said he was suspending his campaign for the Republican party nomination. Huckabee won the Iowa caucus in 2008.

The 2016 election is shaping up to be the year of angry voters as disgruntled Americans worry about issues such as immigration, terrorism, income inequality and healthcare, fuelling the campaigns of Trump, Sanders and Cruz.