European markets firm ahead of election results. Markets are quiet on Independence Day holiday before key US non-farm payrolls jobs figures tonight. And strong iron ore exports can’t stop Australia’s trade surplus from narrowing.
In our bonus deep dive interview, ANZ Head of FX Research Mahjabeen Zaman looks at the potential effects on markets from the possible results in Sunday’s French election.
5 things to know:
UK and French stocks rose 0.8% overnight on hopes for more political stability. Polls show a Labour landslide is expected in the UK, while polls in France suggest the far right won’t get a majority in France’s Parliament. US non-farm-payrolls figures will drive markets tonight. ANZ Economist Bansi Madhavani says US jobs growth in June of 190,000 is expected, down from 272,000 in May.
Australia’s goods trade balance fell in May as a 3.9% increase in imports outpaced a 2.8% rise in exports. ANZ Economist Maddy Dunk says exports of iron ore strengthened, but that was offset by a 2.4% rise in consumables imports.
Thailand’s annual CPI inflation is expected to fall to 0.8% in June, which is below the central bank’s 1-to-3% target band. ANZ Asia Economist Krystal Tan says that implies a monthly fall in prices.
The Philippines’ annual June CPI is expected to be unchanged at 3.9% today. ANZ Economist Arindam Chakraborty says food inflation is set to be flat after rice prices softened in June.
Taiwan’s annual CPI inflation is expected to remain at 2.2% in June. Bansi says the effects of electricity price hikes and food inflation continue to show through.
Cheers
Bernard
PS: Catch you on Monday with detail and reaction from non-farm payrolls and the UK and French elections.
