Asia stocks subdued, Euro up after French election; market uncertainty and fear prevail.

From Investing.com: 2024-06-30 21:30:35

Asian stocks were subdued as traders considered the U.S rates outlook. The Euro edged up after the far-right won less in France’s snap election than some polls predicted. European stock futures jumped 1% as National Rally led the first round. Left-wing alliance also gained but France’s high deficit has created market uncertainty.

The focus shifts to the next round of French voting this Sunday, as parties strategize to avoid the far-right gaining power. The uncertainty has led to high market fear, as the National Rally could potentially gain an absolute majority next week. The situation remains fluid in Europe, leaving investors jittery.

In Asia, the MSCI’s index of Asia-Pacific shares outside Japan slipped, as China’s manufacturing and services activities slowed in June. The spotlight remains on the Federal Reserve’s decision to cut rates, following unchanged U.S. monthly inflation in May. Markets anticipate at least two rate cuts this year, amid slightly higher inflation readings.

U.S. stocks ended lower on Friday as markets speculate on rate cuts. The yen traded around 160.98 per dollar after Japan’s GDP data showed a bigger first quarter contraction. Japanese factory activity stagnated in June due to sluggish demand and rising costs. The dollar index edged slightly lower to 105.65 against competitors.



Read more at Investing.com: Asia stocks stutter, euro gains after first round vote in France By Reuters