European Markets Steady as French Election Looms

European Markets Steady as French Election Looms
This week, European stock markets showed signs of stabilization following recent sharp declines driven by political uncertainties. French government bond yields remained steady after the first bond sale since President Macron's call for a snap election, indicating that the previous risk-averse sentiment is easing. 
In contrast, U.S. markets continue to hit record highs, driven by a surge in artificial intelligence stocks, while Asian markets presented a mixed picture for the week. 
The Bank of England maintained its policy rate at 5.25%, as expected, although a rate cut is anticipated in August following a decline in UK inflation to the target level of 2% in May. Meanwhile, the Swiss National Bank implemented a second rate cut, reducing its rate to 1.25%, while Norway’s central bank held its policy rate steady at 4.5%, suggesting stability in their monetary policies.
In response to the European Central Bank's recent rate cut, more central banks are expected to follow suit, which could lead to improved liquidity and lower rates, typically favorable for equity markets. 
What Does This Mean For Me?
Major European indices experienced varied performance this week, with the Euro Stoxx 600 up by 0.31%, the DAX down by 0.15%, the CAC 40 decreasing by 0.48%, and the FTSE 100 rising by 1.33%.
In the currency market, the euro remained flat against the U.S. dollar, trading just above 1.07, and gained slightly against the British pound following the Bank of England’s rate decision.
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