Even by current standards there was a lot to ponder, evaluate and assess last week. Just think of the abundance of national elections, the variety of PMI releases, the smorgasbord of US job data and the copiousness of crucial US stock readings.
There is no deleterious effect of a sweeping Labour Party win in the UK General Elections and arguably the size of the new government's majority means more of a secure political footing than that of what is happening in Europe. The runoff in France is likely to conclude with a 'cohabitation' and a hamstrung executive that will likely cause more consternation for a debt-ridden economy.
Price supportive developments were in abundance of supply, and they were impossible to resist. The only surprise, if there was any, was that oil prices rallied $1/bbl and not more. To begin on the old Continent business growth in the euro zone slowed in June significantly – maybe one more ECB rate cut is in order this year.
Copyright © 2025 TP ICAP