Asian stocks rise on hopes of US rate cut, euro impacted by French election uncertainty

From Investing: 2024-07-07 20:30:37

Asian stocks edged higher on Monday as investors gained confidence in a potential US rate cut in September. The euro faced political uncertainty with France’s leftist alliance leading ahead of the far right. Investors are relieved by the loss of the far right, but concerned about potential reform reversals. The single currency dipped slightly in reaction to this news.

Equities were supported by hopes of a US policy easing. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1%, while futures for S&P 500 and Nasdaq were both down 0.1%. Investors are looking ahead to earnings season starting this week with reports from Citigroup, JP Morgan and Wells Fargo.

Investors see Friday’s US jobs report as adding to the case for a September rate cut by the Federal Reserve, with futures implying a 77% chance of a move. Markets are also pricing in 53 basis points of easing for this year, up from 40 basis points a month ago. Treasuries rallied with 10-year yields down to 4.297% after the report.

Gold held near one-month highs at $1,385 an ounce while oil prices rose on strong summer fuel demand and potential supply disruptions in the Gulf of Mexico. Brent crude went up 22 cents to $86.76 a barrel, while WTI crude rose 2 cents to $83.18 per barrel.



Read more at Investing: Asia shares firm, euro dogged by French election deadlock By Reuters