📆 Monday, July 8
► European stocks edged slightly higher as traders reacted to the unexpected outcome of France’s snap election. The left-wing New Popular Front failed to secure a majority that would allow them to form a government mitigating fears of increased public spending. Macron’s group was second with Le Pen’s party trailing in third place. The Stoxx Europe 600 benchmark reversed earlier declines, increasing by still 0.4%, while France’s CAC 40 Index also erased losses now trading 0.65% higher. Economic data showed that Germany recorded a trade surplus of €24.9B in May, surpassing expectations. French government bonds narrowed their yield spread against German bonds, indicating easing market jitters.
► US equity futures remain unchanged following last week’s rally, with attention shifting to Federal Reserve Chair Jerome Powell’s congressional testimony and upcoming US inflation data. Last week’s US nonfarm payrolls data showed slower hiring and wage growth, adding to the potential for a Fed rate cut in the near future. Treasury yields ticked higher with the 10-year yield hitting 4.295%, while the USD remained steady. Investors are also preparing for earnings reports from major banks like JPMorgan, Wells Fargo, and Citigroup due Friday. In other corporate news, Boeing faced legal challenges over its 737 Max jetliner issues.
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