4 Essential News to Kickstart Your Day in the Markets

Global Markets Overview

As European stock exchanges await opening, Chinese indices plummet at the end of the session.
Investors turn their attention to the pound following the outcome of the British vote.

Breaking Down the News

Global markets prepare to close the week amidst crucial financial and political events.
From the French elections to the UK vote, expectations on the Fed, predictions on the next ECB rate cut, and the rise of Artificial Intelligence, investors focus on four key news pieces shaping the direction of stocks, bonds, and currencies.

1.
Labour Victory in the UK, Stable Pound

Following the Labour Party’s overwhelming victory in the UK general elections, the GBP/USD pair maintains its range above 1.2750.
The British pound remains steady, with analysts foreseeing potential Brexit renegotiations under a Labour government.
Despite some long-term risks of depreciation against the euro due to expected Bank of England cuts compared to the ECB, higher UK taxes might weaken the pound regardless of the election outcome.

2.
French Turbulence Ahead?

Regardless of the party winning the French parliamentary elections, investors fear increased market turbulence.
While extreme scenarios such as a far-right majority led by Marine Le Pen’s Rassemblement National are unlikely, they also anticipate potential gridlock.

3.
Uncertainty from ECB and Fed

The ECB requires further reassurance on inflation before cutting interest rates, according to President Christine Lagarde.
On the other side of the Atlantic, analysts expect a drop in hiring and wage growth moderation in the US, potentially delaying Federal Reserve rate cuts.

4.
Samsung’s AI Soaring

Samsung Electronics reports a significant sales and profit surge, driven by increasing memory chip demand and global AI development.
The tech giant’s strong performance highlights a recovering memory market propelled by data center demand and AI advancement, sending its stock to new heights.