-French Election Debate
The results from yesterday’s first round of the French parliamentary election went as expected. President Macron’s party came in a poor third place with 20.7%, while Marine Le Pen’s anti-immigration National Rally (RN) won 33.1% of the vote, and a left-wing alliance came in second with 28%. Turnout at 66.7% was the highest for a parliamentary first round since 1997. Although the chances of the RN winning an absolute majority are possible rather than probable, the result remains emphatic for the right. However, without an absolute majority, France will have a hung parliament, and RN will be unable to push through its plans for immigration, tax cuts, and law and order.

-PCE Keeps the FED On Course for September Rate Cut
Friday’s US CORE PCE data was in line with expectations, rising 0.1% in May, resulting in an annualized increase of 2.6%. The markets took this in stride, with expectations for an interest rate cut at the FOMC meeting in September rising to 63% and a 90% probability of no change at the next meeting. Current estimates and consensus see a total of 45bps for 2024.

-More Economic Misery for Japan
A quarterly central bank survey showed on Monday that the business mood in Japan’s service sector soured in June, while a rare unscheduled downgrade to the country’s GDP data revealed that the economy shrank more than previously reported in the first quarter.

-Market Talk
U.S. stock markets were lower into the close on Friday, with all three major indices registering slight losses, once again led by the NASDAQ’s 0.71% decline. However, for the month, the Nasdaq has gained over 6% and over 7.8% for the second quarter. Asian markets wobbled following the French elections and have closed mixed on the first day of the new month and quarter. The Yen remains at multiple-decade lows, trading at over 173.00 against the Euro and 161.00 against the Greenback. In Europe, manufacturing PMI data is coming in a tad stronger and German state CPI data is in line with expectations. The Dax is firmer by 1.3%, the FTSE100 +0.7%, and EuroStoxx600 is up +1.5%. Commodities are consolidating with Gold trading at $2324, US Oil at $81.75, and Silver at $29.12, while Bitcoin, having lost 9.7% in June and 14.5% between April and June, trades at $63,200 today.

Check the UPCOMING WEBINARS here: [ Ссылка ]
• Download the BDSwiss iOS app: [ Ссылка ]
• Download the BDSwiss Android app: [ Ссылка ]
• Join our Telegram Channel: [ Ссылка ]
• Like us on Facebook: [ Ссылка ]
• Follow us on Twitter: [ Ссылка ]
• Follow us on LinkedIn: [ Ссылка ]
• Follow us on Instagram: [ Ссылка ]
• Subscribe to our Channel: [ Ссылка ]

Your capital is at risk. T&Cs apply.

свернуть