Stocks reaching record highs, Unexpected news from France

The markets are starting the week off strong, with Wall Street continuing to hit new records as we head into another earnings season and await Federal Reserve testimony. Meanwhile, surprising results from the French elections saw the left-wing thwart Marine Le Pen’s far-right party, resulting in a hung parliament.

The U.S. Treasuries and dollar are relaxed after the June employment report showed a cooling labor market, fueling hopes for two Fed rate cuts this year. Fed Chair Jerome Powell faces questioning in Congress following his semi-annual testimonies to the House and Senate.

Attention will soon turn to second-quarter corporate earnings updates, starting with the big U.S. banks on Friday. European markets were initially focused on politics, specifically the unexpected outcome of the French assembly elections, which saw tactical voting push the far right into third place behind the left-wing alliance and President Emmanuel Macron’s centrist grouping.

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Despite concerns about policy gridlock, the lack of a dominant force in parliament has eased fiscal worries, and French stocks and government debt saw gains. The euro and sterling also made gains against a softer dollar, with the pound hitting its best level since June 12 following the Labour Party’s landslide poll win.

In the U.S., stock futures were steady near record highs, with Treasury yields hovering around 4.3% and crude oil prices falling. World stocks were generally buoyant, with China’s stocks being the exception as they fell for the fifth straight session.

Key developments to watch for include U.S. June employment trends, Bank of England member Jonathan Haskel speaking, and U.S. Treasury auctions. As the week progresses, we anticipate more market movements and opportunities for investors.

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At Extreme Investor Network, we stay ahead of market trends and provide valuable insights to help you navigate the ever-changing landscape of finance. Stay tuned for more updates and analysis to make informed investment decisions.