Global Markets React to Economic Shifts Amid Political Changes

Wall Street stocks saw gains after slowed job growth in June. UK and French markets reacted positively following political events, particularly the UK election and expectations around France's legislative vote. The global market showed mixed responses amid ongoing inflation concerns, with significant moves in currencies, commodities, and cryptocurrencies.

Wall Street experienced a positive lift on Friday as data revealed U.S. job growth slowed but remained robust in June. The Dow Jones Industrial Average rose by 0.3%, while the S&P 500 saw a brief rise of 0.11% before leveling off, and the Nasdaq Composite edged up by 0.3%.

Simultaneously, UK stocks climbed higher following a decisive general election victory by Britain's Labour Party after 14 years of Conservative dominance. The electoral focus in Europe also turned to France's upcoming second-round legislative election.

French stocks rebounded after an initial plunge, encouraged by the euro's strength amid U.S. rate-cut speculations. The MSCI world stock index reached a record high, and European shares rose by 0.3%. Japanese markets also recorded historic gains, with the FTSE 100 index in London rising by 0.38%.

Zurich Insurance Group's Guy Miller noted that slower U.S. job growth and a rising unemployment rate increase the likelihood of the Federal Reserve managing inflation without pushing the economy into recession. As investors fixate on inflation trends in major economies, global markets maintain a hopeful outlook.

The yield on 10-year British government bonds dropped slightly, and sterling experienced a slight uptick. Analysts, however, remain cautious about the new Labour government's potential impact on business and tax policies.

Elsewhere, the U.S. labor market added 206,000 jobs in June, below the May revision of 218,000. The subdued employment figures may support a potential rate cut by the Federal Reserve in September. In currency and commodities markets, the euro rose slightly, while gold and oil prices continued to gain. Bitcoin faced its largest weekly decline, with concerns over significant sell-offs from defunct exchange Mt. Gox.

(With inputs from agencies.)