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Daily Market Commentary 11th June 2024

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The European election results shook up markets in Europe, with substantial moves to the right. with fear showing from incumbent liberals. Macron in France called early Parliamentary elections, following the drubbing he received in the elections, while pressure is building in Germany for the Government to do the same. The move to the right is a rection to falling living standards, in many parts of Europe, as a result of sanctions and recession. European equities tumbled, but US markets largely ignored the political intrigue across the Atlantic, instead looking ahead to the Fed’s interest rate decision, later this week. The EUR fell back to 1.0770, while the GBP traded 1.2730.

Commodity currencies stabilised, following big losses, to close out the last week of trading. The AUD looked to hold on to 0.6600, while the NZD consolidated around 0.6100. Japanese GDP growth fell sharply, contracting 1.8% for Q1, reflecting the testing economic and financial conditions Japan is currently suffering. Growth and inflation will dominate European markets, along with the political upheaval, while US markets will focus on the Federal Reserve.

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