📆 Monday, July 1
► European stock-index futures recover some of the recent sharp losses with Stoxx 600 up by 0.5%, amid speculation that Marine Le Pen’s far-right party will struggle to secure an outright majority in the French elections. This helped eased investor concerns over a potential radical policy shift in Europe’s second-largest economy even as the far-right National Rally party and its allies won 33.1% of the vote, the left-wing NFP alliance was second with 28% and Macron’s coalition only securing 20%. Futures on French government bonds edged higher, while CAC 40 Index futures rose after the first round of voting showed Le Pen’s National Rally leading President Emmanuel Macron’s centrist alliance, though not as strongly as some polls predicted. The relief over the election outcome was tempered by France's economic data, indicating a continued period of political negotiation before the second round of voting on July 7. Markets await the release of German inflation data later today.
► U.S. stock futures are slightly up in pre-market trading amid mixed corporate news. Boeing agreed to buy back Spirit AeroSystems Holdings, while the US Justice Department is expected to charge Boeing with criminal fraud. Economic data indicated a cooling US economy without significant consumer impact, as consumer sentiment declined less than expected. Treasury 10-year notes remained stable. Analysts suggest the USD could serve as a safe-haven currency amidst political uncertainties, while the Federal Reserve’s upcoming decisions continue to be a focal point for investors.
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