European Markets Stabilize Ahead of French Election
European markets showed resilience this week after a significant downturn, primarily driven by political uncertainties surrounding the upcoming French parliamentary election. The stabilization in steady French government bond yields following Macron's call for a snap election indicates fading risk-off sentiment among investors. Key benchmarks like the Euro Stoxx 600 and FTSE 100 posted mixed performances, with sectors like banks and energy stocks leading the recovery.
US Market Reaches New Highs, Led by AI Stocks
Meanwhile, across the Atlantic, US stock markets continued their upward trajectory, reaching new highs buoyed by a rally in AI (artificial intelligence) stocks. The S&P 500 briefly surpassed 5,500 for the first time, with the Dow Jones Industrial Average and Nasdaq also recording gains. However, signs of profit-taking emerged in technology shares towards the end of the week, impacting prominent companies like Nvidia.
Commodities and central bank actions influence markets.
In commodities, crude oil prices surged to nearly two-month highs on optimistic demand outlooks and a decrease in US inventory data. This rise benefited major energy companies like Shell and BP, which saw notable gains. Central banks globally also played a pivotal role, with the Bank of England holding rates steady amid plans for a potential cut in August, while the Swiss National Bank implemented its second rate cut.
Asian Markets Show Mixed Results
Asian markets closed the week with mixed performances: the Australian ASX 200 and Chinese Hang Seng Index posted gains, while the Japanese Nikkei 225 experienced a slight decline. The Reserve Bank of Australia maintained its official cash rate, while the People’s Bank of China kept key rates unchanged despite tepid CPI data prompting speculation of future stimulus measures.
Overall, global markets navigated through varied economic indicators and central bank actions, shaping investor sentiment amidst ongoing geopolitical developments and sector-specific performances.
