Stock Market Gains as Traders Navigate French Election Results and Await US Jobs Data
As the month begins, global markets responded positively, buoyed by the unfolding economic landscape and recent French election results. Traders are keenly awaiting a series of critical economic reports, including the pivotal US jobs report due on Friday, which is expected to influence the Federal Reserve’s forthcoming decisions.
In Europe, markets rebounded from a four-day slide, driven by a surge in banking stocks after French election outcomes reduced fears of extreme far-right policies. Notably, shares of major French banks like Societe Generale SA, BNP Paribas SA, and Credit Agricole SA jumped over 5%. The euro strengthened, reaching its highest level since mid-June, as the CAC 40 Index saw a sharp rise of up to 2.8% before paring some gains.
In the US, the S&P 500 modestly increased by 0.3%. Meanwhile, the yield on 10-year Treasuries climbed six basis points to 4.45%, and the dollar experienced fluctuations.
Corporate Highlights:
- Boeing Co. (BA) announced an all-stock acquisition of Spirit AeroSystems Holdings Inc. for $37.25 per share, valuing the supplier at $4.7 billion, as it aims to address ongoing manufacturing challenges.
- Chewy Inc. (CHWY) saw its shares climb after Keith Gill, also known as Roaring Kitty, revealed a 6.6% passive stake in the company.
- Meta Platforms Inc. (META) faces regulatory scrutiny in the EU over its new subscription model for ad-free services on Instagram and Facebook, which could lead to significant fines.
- A.P. Moller-Maersk A/S (AMKBY) has withdrawn its bid for DB Schenker, valuing the logistics entity at over €15 billion.
- Air France-KLM (AF.PA) reports potential revenue pressures on its French operations this summer, as travelers may avoid Paris due to expected disruptions during the Olympic Games.
- BYD Co. (BYDDY) recorded a surge in sales of electric and hybrid vehicles in the second quarter, bolstered by price reductions and technological advancements.
