Shares stabilized on Monday as European stocks partially recovered from last week’s losses, with the euro remaining weak amid ongoing political uncertainty in France. Investors are closely watching central bank meetings in Australia, Norway, and the UK, and fresh U.S. economic data due this week. European stocks saw a slight rally, led by banks, following French President Emmanuel Macron’s call for a snap election that had previously triggered a market selloff.
Despite these developments, the euro continued its decline, reflecting investor concerns over potential fiscal instability in Europe. European Central Bank policymakers indicated no immediate plans for emergency measures to stabilize French bonds. JPMorgan analysts warned of the broad implications of a fiscal challenge in France. Meanwhile, mixed economic news from China highlighted a fragile recovery, with industrial output and fixed-asset investment falling short of expectations.
In the U.S., S&P 500 futures remained steady, buoyed by Goldman Sachs raising its year-end target for the index to 5,600, citing strong earnings growth from major tech stocks. The main U.S. data focus will be on retail sales for May. The dollar remained stable, while oil prices held firm despite mixed signals from Chinese economic data.
Source: Reuters