France’s CAC40 index continued its upward trend, marking a second consecutive day of gains amidst anticipation of the upcoming snap parliamentary elections this weekend. Meanwhile, in the UK, where general election voting is ongoing, investors are awaiting the first exit polls at 10 p.m. local time.
Across Europe, the Stoxx 600 index edged up 0.5%, driven by gains in automotive and banking sectors. In the US, equity futures showed little change as markets remained closed for Independence Day following record highs set by the S&P 500 and Nasdaq 100 in a shortened trading session on Wednesday.
Key stock movements included Continental AG’s significant rally of up to 12%, bolstered by strong growth prospects in China. Conversely, Roche Holding AG faced declines after a setback in a clinical trial for a lung-cancer drug.
Morgan Stanley strategists advised investors to consider French stocks ahead of Sunday’s election, predicting potential market rebounds regardless of the election outcome. They highlighted positive movements in French bonds, influenced by efforts to prevent Marine Le Pen’s National Rally from securing a majority in the National Assembly.
In Asia, stocks saw robust gains, with an MSCI gauge reaching its highest level in over two years, led by strong performances in the technology sector. Japan’s Topix index surged to a record high amidst favorable market conditions.
Currency markets reflected a strengthening yen, touching its lowest level against the dollar since 1986 in previous sessions. Analysts speculated on the Bank of Japan’s cautious approach to policy tightening, as the dollar index weakened for the third consecutive day amid expectations of dovish US rate adjustments.
Global stocks are poised for their longest weekly winning streak since March, buoyed by soft US economic data that revived expectations of potential rate cuts in September. Recent reports indicated contraction in the US services sector and signs of labor market softening.
Looking ahead, market focus shifts to the US jobs report due on Friday, which is anticipated to show a moderate increase in non-farm payrolls for June. Economists will scrutinize these figures for insights into the Federal Reserve’s rate policy amid indications of cooling economic conditions.
In commodities, iron ore futures climbed on optimism over Chinese demand, reaching their highest levels in nearly a month.
Upcoming Key Events:
1.UK general election results, Thursday
2.US Independence Day holiday, Thursday
3.Eurozone retail sales data release, Friday
4.US jobs report, Friday
5.Speech by Fed’s John Williams, Friday
Market Movements:
1.Stoxx Europe 600: +0.3% (as of 8:33 a.m. London time)
2.S&P 500 futures: Unchanged
3.Nasdaq 100 futures: Unchanged
4.MSCI Asia Pacific Index: +1%
5.MSCI Emerging Markets Index: +0.9%
Currency and Bond Markets:
1.Bloomberg Dollar Spot Index: -0.1%
2.Euro: Unchanged at $1.0792
3.Japanese Yen: +0.2% to 161.43 per dollar
4.10-year Treasury yield: Little changed at 4.36%
Commodities:
1.Brent crude: -0.8% to $86.64 per barrel
2.Spot gold: Unchanged
Related topics:
Asia Stocks Reach 27-Month Highs Amid Rate Cut Expectations
