London Market (+0.56%) keeps an eye on the UK parliamentary election. The focus is on whether the Labour Party can secure a majority vote, potentially ending 14 years of Conservative rule.
German Market
Germany’s main index (DAX:IND) saw a gain of +0.23%. Key economic indicators showed an improvement in June construction PMI to 39.7 from the previous 38.5. However, May industrial orders fell by 1.6% compared to an expected increase of 0.5%.
French Market
France’s market (CAC:IND) rose by +0.51%. However, the country’s Construction PMI dropped to a three-month low of 41 in June.
Switzerland’s Economic Status
In Switzerland, June CPI came in at +1.3% versus the expected +1.4% year-on-year. The seasonally adjusted unemployment rate stood at 2.4%, meeting expectations.
Other European Updates
Italy’s Construction PMI decreased to 46 in June, showing signs of decline. Meanwhile, retail sales in Slovakia saw a growth of 5.2% year-on-year in May, and the Czech Republic experienced a 4.4% year-on-year increase in retail trade for the same period. The Eurozone Construction PMI fell to 41.8 in June.
The pan-European Stoxx 600 (STOXX) continued its positive trend, moving 0.29% higher. This upward movement comes on the back of optimistic sentiments following the release of U.S. economic data, hinting at potential interest rate cuts by the Federal Reserve later this year.
“Traders are also gearing up for the UK parliamentary election, with the outcome anticipated later tonight,” analysts noted.
Bond Market Performance
In the bond sector, the U.S. 10-year Treasury yield dropped by 8 basis points to 4.35%. Germany’s 10-year yield saw a marginal increase of less than 1 basis point, reaching 2.57%. Meanwhile, the U.K.’s 10-year yield rose by 1 basis point to 4.18%.
Currency and ETFs
Key currency pairs included (EUR:USD), (GBP:USD), and (CHF:USD). Notable ETFs in focus encompassed (EWG), (GF), (EWI), (EWQ), (FGM), (DAX), (FLGR), (FXB), (EWU), (FKU), (EWUS), (FLGB), and (GREK).