Morning Markets: Macron marching, Europe breathing sigh of relief
- Japan: Machinery orders (published)
- Portugal: CPI (1000 GMT)
European markets are expected to react positively to yesterday's victory of.newly elected French President Emmanuel Macron's LREM. His bloc is foreseen to get at least 390 of the national assembly's 577 seats, which should allow the pro-European Macron to realise his reform programme. However, the participation rate at a record low level of below 50% raises questions as to how much support he really has in French society. The second round of the French parliamentary elections will be held next Sunday.
- Asian markets were lower following a US tech stock rout and amid the UK political crisis
- Japan's monthly core machinery orders fell 3.1% in April; a rise of 0.6% was expected
- Japan's corporate goods price index remained unchanged at 2.1% in May
- UK Prime Minister Theresa May is looking increasingly vulnerable to challengers
- Partial results show French President Macron's centrist party leads parliamentary elections
- Investors expect the Federal Reserve to raise interest rates on Wednesday
- Markets in Australia, Malaysia and the Philippines are closed for holidays
- Sterling held losses amid the fallout from the UK election
- The yen added 0.1% to ¥110.23 against the dollar
From the Floor
FOMC. “Basically a dovish hike [is] priced in,” says Hardy.
Sold off. “Tech stocks [in Asia] continued the Nasdaq selloff from Friday,” says Bresler.
Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.
The market’s been driving gold prices higher this year, marking a reversal from the sharp downturn in late 2016, writes James Picerno.
Asian markets opened lower as the fallout from the shock UK election continues and Theresa May's position becomes increasingly untenable, writes the team at Saxo APAC Sales Trading.
The UK election fervour is dying and there's now only one game in town – the one in Washington, says Kay Van-Petersen
The outcome of the UK election could delay Brexit talks and the uncertainty is likely to speed up major banks' departures from London, possibly to Frankfurt, writes Peter Garnry.
A strong rally in gold and silver gave way to profit-taking by the end of the week once the uncertainties of the ECB meeting and Comey testimony were left behind, says Ole Hansen.
Morning Markets goes out on the TradingFloor platform at 0700 GMT, Monday to Friday.
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