📆 Monday, June 10
► European markets faced turbulence today as the EUR fell by as much as 0.5%, its lowest in a month following French President Emmanuel Macron's call for a snap vote after losing the European Parliament elections. The Stoxx 600 also dropped close to 0.6%. Gains for far-right parties in the EU vote prompted Macron’s move to counter the rise of Marine Le Pen. Meanwhile, Germany’s GDP expanded 0.2% in Q1, slightly exceeding expectations, and the country's jobless rate held steady at 5.9%. Chancellor Olaf Scholz's Social Democrats suffered a record defeat, which further exacerbated the markets' unease.
► US markets are cautious as traders await the Federal Reserve's policy decision and May’s inflation data on Wednesday. US equity futures declined slightly, with the Nasdaq and S&P 500 declining by ~0.2%. A strong jobs report was reported last Friday showing nonfarm payrolls up by 272,000 while the unemployment rate was rising to 4%, creating a mixed economic picture. The higher-than-expected payroll increase indicates that employers are hiring at a robust pace, which is a positive sign for the economy, however the increase in the unemployment rate suggests that the labor market is more complex. This rise could be due to more individuals re-entering the workforce in search of jobs, or it could reflect some job losses. This combination of factors will likely be carefully considered by policymakers and investors. Investors are also looking forward to Apple’s Worldwide Developers Conference (from June 10 -14) for new software announcements.
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