Asian Stocks Climb Amid U.S. Rate Cut Optimism; French Elections Stir Euro

Asian stocks rose slightly as investors anticipated a U.S. rate cut in September. In France, political uncertainty followed elections that resulted in a hung parliament with a leftist alliance overtaking Marine Le Pen's far-right party. The euro dipped, while equities were supported by hopes for U.S. policy easing.

Devdiscourse News Desk | Updated: 08-07-2024 05:57 IST | Created: 08-07-2024 05:57 IST
Asian Stocks Climb Amid U.S. Rate Cut Optimism; French Elections Stir Euro
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Asian stocks inched higher on Monday as investors became more confident about a September rate cut in the U.S., while the euro faced political uncertainty following French elections that pointed to a hung parliament.

In France, a leftist alliance unexpectedly took top spot ahead of the far right, preventing Marine Le Pen's National Rally (RN) from running the government. Despite concerns over the left's plans to unwind many of President Macron's pro-market reforms, investors found some relief in the far right's loss.

Equities received a boost from hopes that U.S. policy easing was approaching, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.1% after hitting a two-year high last week. The Federal Reserve's potential rate cut, signaled by recent jobs data, further supported the markets. As earnings season kicks off, key reports from Citigroup, JP Morgan, and Wells Fargo are expected. Meanwhile, oil prices rose amidst robust summer fuel demand and potential Gulf of Mexico supply disruptions.

(With inputs from agencies.)

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