(Bloomberg) — Stocks started the month on a positive note, as traders braced for a deluge of economic reports while assessing the impacts of the French election on markets.
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In the countdown to Friday’s all-important U.S. jobs report, Wall Street will examine a trove of data and remarks from Federal Reserve officials for clues about the central bank’s next steps. European stocks ended a four-day losing streak and the euro rose as French election results suggest there is a lower likelihood of extreme policies coming from the far right.
“The vote is far from final. But it leans towards the least worst-case scenario of a hung parliament, political paralysis in Paris and chronic dysfunction at the European Union level rather than the worst-case scenarios of an outright victory for the far right or far left that could lead directly to a new sovereign crisis,” Krishna Guha told Evercore.
Traders are also mulling their strategies after last week’s presidential debate. Morgan Stanley strategists say equity investors “should remain selective” and maintain a bias toward quality U.S. stocks heading into election season. In a separate note, the firm said the growing prospect of a Donald Trump presidential victory makes a steepening yield curve an attractive bet, as growth would likely slow and inflation accelerate in such a scenario.
The S&P 500 index rose 0.3%. The French CAC 40 index jumped 2.8% before losing part of its gains. Banking stocks led the rise in Europe’s Stoxx 600 index, with French banks Société Générale SA, BNP Paribas SA and Crédit Agricole SA all jumping more than 5%. The euro climbed to its highest level since mid-June.
The yield on the 10-year Treasury note rose six basis points to 4.45%. The dollar has fluctuated.
Company strengths:
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Boeing Co. has agreed to buy Spirit AeroSystems Holdings Inc. for $37.25 a share in an all-stock deal that values the supplier at $4.7 billion, ending a two-decade separation as the troubled U.S. aircraft maker tries to fix manufacturing flaws.
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Chewy Inc. surged after Keith Gill, known online as “Roaring Kitty,” revealed a passive 6.6% stake in the online pet food and products retailer.
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Meta Platforms Inc. received a warning over its ad-free service subscription model on Instagram and Facebook, facing potentially hefty fines in the European Union’s latest attack on big tech under tough new rules .
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AP Moller-Maersk A/S has withdrawn its offer for DB Schenker, the logistics unit of Deutsche Bahn AG, which is reportedly valued at more than 15 billion euros ($16.1 billion).
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Air France-KLM is facing pressure on expected unit revenues this summer at its French units as passengers avoid Paris during the summer months to avoid potential disruptions and high prices during the Olympics.
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BYD Co. sold a record number of electric and hybrid cars in the second quarter, according to sales data compiled by Bloomberg News, as price cuts and new technologies prompted consumers to buy.
Key events this week:
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Eurozone CPI, unemployment, Tuesday
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Job offers in the United States, Tuesday
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Jerome Powell and Christine Lagarde speak at an ECB forum in Portugal on Tuesday
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Caixin China Services PMI Index, Wednesday
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S&P Global Eurozone Services PMI and PPI, Wednesday
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US Fed Minutes, ADP Employment, ISM Services, Factory Orders, Initial Jobless Claims, Durable Goods, Wednesday
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Fed Chairman John Williams speaks Wednesday
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UK general election, Thursday
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United States Independence Day, Thursday
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Eurozone retail sales, Friday
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US jobs report, Friday
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Fed’s John Williams speaks Friday
Some of the main market movements:
Actions
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The S&P 500 was up 0.3% as of 9:30 a.m. New York time.
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The Nasdaq 100 rose 0.2%
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The Dow Jones Industrial Average rose 0.3%
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The Stoxx Europe 600 rose by 0.6%
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The MSCI World Index rose 0.3%
Currencies
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Bloomberg Dollar Spot Index little changed
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The euro rose 0.4% to $1.0756
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The British pound rose 0.2% to $1.2675
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The Japanese yen fell 0.3% to 161.39 per dollar
Cryptocurrencies
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Bitcoin rose 1.6% to $62,905.56
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Ether rose 1.7% to $3,473.66
Obligations
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The yield on 10-year Treasury notes rose six basis points to 4.45%.
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The German 10-year yield rose nine basis points to 2.59%.
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The UK 10-year yield rose seven basis points to 4.24%
Raw materials
This story was produced with the help of Bloomberg Automation.
–With assistance from Lynn Thomasson, Julien Ponthus, John Viljoen, Catherine Bosley, Matthew Burgess and Vildana Hajric.
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