Stocks, Euro Stand as Investors Parse French Election: Markets Wrap

(Bloomberg) — ECU shares snapped a four-day losing streak and the euro rose as the impact of the French election suggested final insurance policies are less likely to come from the far-right.

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Investors interpreted the first round of legislative voting as a sign that Marine Le Pen’s party faces a tougher than expected path to overall victory, undermining the risks of the spending plans that have roiled financial markets. Will happen. The ten-year spread on French-German debt narrowed to a two-week low.

“The markets are quite complacent and there is no clear absolute majority,” said Claudia Panseri, France’s leading investment officer at UBS Wealth Control. “The most extreme scenarios for spread have been excluded.”

France’s CAC 40 index jumped 2.8% before pulling back on some positive factors. Banking shares led gains in Europe’s Stoxx 600 index, as French lenders Societe Generale SA, BNP Paribas SA and Credit Agricole SA all rose more than 5%. The euro climbed to its strongest level since mid-June.

Beyond Europe, US equity futures rose about 0.2%. Spirit AeroSystems Holdings Inc. Up 6.3% in upcoming Boeing Co premarket purchases and agreed to buy back the provider in an all-stock offering that values ​​it at $4.7 billion. Shares of Chewy Inc. surged 29% following influential investor Keith Gill’s disclosure of a 6.6% passive stake in the online dog food and product store.

The second round of voting in France will take place on July 7. The political world of France is now in a period of buying and selling. In constituencies where 3 communities qualify for runoffs, the third-place candidate may advance to boost his chances of defeating a far-right ethnic candidate from another mainstream party.

“It’s hard to argue that you got a good result,” Sebastian Redler, head of ECU fairness technology at Warehouse of Us, said on Bloomberg TV. “Maybe you block the majority by hard right. But in the best case scenario, you will get a hung Parliament. This effectively means very little decision-making, no ability to deal with very large budget deficits, and the story of European integration effectively stalled.

Meanwhile, as U.S. investors prepare for the second-quarter reporting season, Goldman Sachs Workforce Inc. Strategists said the company is facing its best possible earnings bar in nearly three years.

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Single-stock analysts expect revenues of S&P 500 companies to grow at a moderate rate of 9% in the April-June period — the largest year-over-year increase since the fourth quarter of 2021, Goldman strategists led by David Kostin said. Wrote an observation.

“Earnings per share numbers are likely to be lower as consensus forecasts set a higher bar than in previous quarters,” Kostin said. “We expect the ‘reward’ for outperformance for stocks that beat estimates will again be below average this quarter.”

In emerging markets, South African assets rallied after incoming President Cyril Ramaphosa announced an undrafted cabinet with members of the opposition Democratic Alliance, which is seen as business-friendly by investors.

Among commodities, oil rose as investors assessed the financial outlook and geopolitical threats in Europe and the Heart East. Iron ore rose amid tentative signs of a boost in China’s steel-intensive expanding market, and speculation Beijing could do more to aid the sector.

Key events of this hour:

• US Building Expenditures, ISM Production, Monday

• ECB President Christine Lagarde speaking on Monday

• Bundesbank President Joachim Nagel speaks on Monday

• RBA releases details of June coverage meeting on Tuesday

• South Korea CPI, Tuesday

• Eurozone CPI, Unemployment, Tuesday

• Fed Chairman Jerome Powell speaks on Tuesday

• ECB President Christine Lagarde speaking on Tuesday

• Australia Retail Sales, Wednesday

• China Caixin Services and Products PMI, Wednesday

• Eurozone S&P World Eurozone Services and Products PMI, PPI, Wednesday

• Poland pricing, Wednesday

• US FOMC Minutes, ISM Services & Products, Manufacturing Unit Orders, Business, Initial Jobless Claims, Strong Commodities, Wednesday

• ECB President Christine Lagarde speaks, Wednesday

• Pristine New York Fed President John Williams speaks on Wednesday

• Sweden’s Riksbank issues June assembly minutes, issues on Wednesday

• Australia Business, Thursday

• General elections in Britain, Thursday

• ECU Union’s provisional price list on China EVs to be unveiled on Thursday

• The ECB published the accounts of its June coverage meeting on Thursday

• American Self-Determination Future Peace, Thursday

• Thailand CPI, World Stock, Friday

• Eurozone retail sales, Friday

• France Business, Business Manufacturing, Friday

• Germany Business Manufacturing, Friday

• ECB President Christine Lagarde speaks, Friday

• Canada Unemployment, Friday

• US Unemployment, Non-Farm Payrolls, Friday

• Pristine York Fed President John Williams speaks, Friday

Possibly the biggest strikes in the markets:

shares

• S&P 500 futures rose 0.2% by pristine York moment at 7:14 a.m.

• Nasdaq 100 futures rose 0.2%

• Dow Jones Business Reasonable futures rose 0.2%

• Stoxx Europe 600 rose 0.5%

• MSCI global index rose 0.2%

currencies

• The Bloomberg Greenback Spot Index was little changed.

• Euro rose 0.4% to $1.0751

• The British pound rose 0.3% to $1.2678

• The eastern yen fell 0.1% to 161.09, according to the greenback.

cryptocurrency

• Bitcoin rose 1.4% to $62,747.51

• Ether rose 1.4% to $3,464.87

bond

• Yields on 10-year Treasuries complicated one basis point to 4.41%

• Germany’s 10-year surrender compounded seven basis issues to 2.57%

• UK 10-year cap yields compounded 5 basis points to 4.22%

Goods

• West Texas Intermediate crude rose 0.6% to $82.04 a barrel

• Spot gold rose 0.3% to $2,333.94 an ounce

This story was produced in collaboration with Bloomberg Automation.

–With the help of Sagarika Jaisinghani.

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