Thanks for joining me. French stocks and wider European markets are expected to rally in the coming days after the outcome of the elections in Europe’s second-largest economy.
Morgan Stanley strategists have said that both a hung parliament and a National Rally majority would likely lead to a “relief rally” after the sharp plunge experienced after Emmanuel Macron called the vote last month.
5 things to start your day
1) Royal Mail faces surging debt bill after ‘Czech Sphinx’ takeover | Buyout risks trebling borrowing costs due to the billions being taken on in financing
2) How Italy shook off its ‘basket case’ brand – and stole Britain’s millionaires | Meloni’s Milan is poised to usurp London as a playground for the wealthy
3) Jim Ratcliffe delays launch of electric SUV | Ineos cites weak demand for EVs as it puts car on hold
4) BMW attacks EU tariffs on Chinese electric car imports | Criticism comes amid fears of a tit-for-tat response by Beijing on German exports
5) Matthew Lynn: Home workers’ moral bankruptcy will bring Britain to the brink | Greece’s addition of a sixth working day shows countries can change their fortunes
What happened overnight
Asia stocks hit 27-month highs as lower-than-expected employment figures data narrowed the odds on a September rate cut in the US.
The Independence Day holiday in the United States made for thin trading, as investors waited to see the outcome of the UK election.
Across the English Channel, polls suggested the National Rally (RN) would not win a majority of seats in Sunday’s French election as mainstream parties moved to block the far-Right.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9pc to reach its highest since April 2022.
Japan’s Nikkei climbed 0.9pc to within spitting distance of its March peak, while the broader Topix clinched all-time highs.
Taiwan’s main index also struck a record led by the tech sector and Taiwan Semiconductor Manufacturing Co (TSMC) which cleared T$1,000 for the first time.
On Wall Street, the S&P 500 rose 0.5pc, to 5,537.02, to set an all-time high for a second straight day and for the 33rd time this year.
The Dow Jones Industrial Average slipped 0.1pc, to 39,308.00, while the Nasdaq Composite added 0.9pc to its record set the day before, closing at 18,188.30. Trading ended early for the day ahead of the Fourth of July holiday.
The yield on benchmark 10-year US Treasury bonds dropped to 4.35pc from 4.44pc late on Tuesday, a notable move for the bond market, and much of the slide came after a report on US services businesses.