This week, there are several significant events in business and finance that are worth monitoring. In the US, the highly anticipated monthly jobs report is set to be released on Friday, July 5th. Experts predict an increase of 180,000 jobs in June, following a surprising rise of 272,000 jobs in May. The Federal Reserve recently decided to maintain interest rates and put off any rate cuts.
Meanwhile, France is preparing for its upcoming snap election on Sunday, which has caused some market volatility. Despite concerns about increased spending, Marine Le Pen’s National Rally party has assured that they will be fiscally responsible. However, French bank stocks continue to face significant losses.
In Britain, the Labour Party is expected to win by a landslide on Thursday. This potential outcome could boost UK stocks and government bonds, with the trade-weighted sterling rebounding back to pre-Brexit levels. The Institute for Fiscal Studies has issued a warning about looming fiscal challenges that both parties have yet to address.
The Federal Reserve’s reluctance to cut interest rates combined with a strong dollar is limiting the possibility of rate cuts in Asia. Although inflation in most emerging Asian economies remains within central banks’ targets, policymakers are maintaining higher rates to defend their currencies. Bank of Thailand Governor will likely reiterate the central bank’s stance when addressing the media on Thursday.
