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.
Risk Disclosure: Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Arincen would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Arincen and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Arincen and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Arincen may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.