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Markets Update: Asian stocks eyed a fifth month of gains fueled by hopes of a Fed rate cut this year, despite a risk-filled Friday with the release of key U.S. inflation data and the first presidential debate potentially impacting market sentiment.
Economic Calendar
Global Markets Roundup: July 1, 2024
Asian stocks displayed a muted performance on Monday as investor focus shifted towards the implications of France's surprise election results. The euro, however, strengthened in response.
The far-right party emerged victorious in the first round of the French election, albeit with a smaller margin than anticipated. This unexpected outcome, coupled with the prospect of significant spending increases pledged by both leading contenders, has injected uncertainty into the market. France's high budget deficit and potential clashes with the EU further add to anxieties. European stock futures also advanced, with investors finding solace in the possibility of rival parties strategically aligning to prevent a far-right victory in the upcoming runoff.
While Asian markets remained largely flat, concerns linger about the potential impact of a far-right majority in the French Parliament. A win for the National Rally (RN) could disrupt European markets and weaken the euro. Japan's Nikkei NI225 managed a modest gain, while Chinese blue-chip stocks (3399300) dipped slightly. A conflicting picture emerged from China's manufacturing data, with a private sector survey indicating growth but an official report suggesting a decline.
Meanwhile, the focus remains on the US Federal Reserve's monetary policy decisions. Despite unchanged inflation data for May, markets anticipate at least two rate cuts this year.
The yen USDJPY weakened against the dollar following a downward revision to Japan's GDP data and stagnant factory activity. The euro, on the other hand, reached a two-week high, pressuring the US dollar index DXY. The euro EURUSD rose 0.46%, buoyed by a tempered market reaction to the election.Â
In commodities/agricultural commodities, Oil prices edged up modestly, with Brent futures BRN1! hovering around $85 per barrel U.S. WTI crude futures CL1! higher 0.42% at $81.88. Spot GOLD was trading flat at $2,324.44 per ounce. Wheat ZW1! climbed 0.6% to $5.76-3/4 a bushel
Looking ahead today, markets anticipate, UK Nationwide Housing Prices, German Regional CPI, UK Mortgage Data, German Inflation Rate Prel, US ISM Manufacturing.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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