Time: 2024-07-05
European stocks , including the Frances CAC 40 benchmark index and Europes regional Stoxx 600 index , have been on the rise recently . Investors are showing optimism about potential Federal Reserve interest - rate cuts . The rise in key elections and positive US economic data supporting the case for easing are contributing to this trend.
The buildup to the final round of voting in snap parliamentary elections is boosting the Frances CAC 40 benchmark index . Polls suggest that Marine Le Pens National Rally and its allies may fall short of a majority . Additionally , voting is currently underway in the UKs general election . The first official exit poll is expected soon after 10 p.m. local time.
Banks are leading the gains in the regional Stoxx 600 index , which has climbed by 0.6 % . US equity futures contracts are stable , with cash markets closed for Independence Day . Reports show that global stocks are on track for their longest stretch of weekly gains since March.
In the US , the ISM services sector contracted at the fastest pace in four years , indicating softening in the labor market . This negative data is actually being seen as positive for markets , with September being the anticipated date for a potential rate cut.
Continental AG and Pandora A / S are among the individual stock movers , with the former rallying due to strong growth in China and the latter falling due to raw - material cost pressures . In Asia , broader gains for stocks are stronger , with Japans Topix climbing to a record high.
French bonds have been lifted by political maneuvering seeking to block National Rally from winning an absolute majority in the National Assembly . Stock investors are advised to follow suit and consider adding exposure to the French market . Concerns over risks to Frances finances are abating , as seen in the narrowing gap between French and German 10 - year yields.
Traders are also keeping an eye on US rates , with the Feds June policy meeting minutes showing officials waiting for evidence of cooling inflation . The upcoming US jobs report will provide more clarity on the path for rates . Additionally , speculation about President Joe Bidens re - election and its impact on markets is being monitored.
Bitcoin is facing a downward trend , influenced by factors such as Bidens candidacy drama and potential government sales of the cryptocurrency . In commodities , oil prices have dropped from a two - month high , while iron ore futures are climbing on optimism for demand improvement from China.
In conclusion , the markets are closely watching key events like the UK general election , the US Independence Day holiday , Eurozone retail sales , and the US jobs report . These events , along with political developments and economic data , will continue to shape market trends in the coming days.
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