Investor sentiment seesawed as global markets braced for the French election weekend. Despite the Conservative Party’s ousting in Britain, the FTSE 100 dipped, while Germany’s Dax and London’s second-tier index saw gains. French government bond prices and the euro surged, alongside gold and Brent. In the US, the job market sent mixed signals in June, with non-farm payrolls increasing by 206,000 but revisions downward for the previous months.
Industrial production in Germany suffered a 2.5% decline in May, the largest contraction in two and a half years, while Eurozone retail sales saw a modest 0.1% month-on-month increase in May. Aixtron’s stock soared 18% following strong second-quarter order intake, easing fears of weak electric vehicles market demand. Varta also rose by 19% after confirming talks with Porsche on a potential investment in its lithium-ion battery business.
Meanwhile, UK housebuilders rallied as the Labour Party unveiled plans for extensive home building and planning law changes. Barratt, Persimmon, Bellway, and Vistry all saw stock prices rise. The markets’ twists and turns reflect the uncertainty and resilience characteristic of global economies in the midst of evolving geopolitical landscapes.
