European stocks are anticipated to open on a subdued note on Monday, following the unexpected call for a snap election in France, which has heightened political concerns and pressured the euro.
Stock futures declined as French President Emmanuel Macron announced a surprise election after experiencing a significant defeat by far-right parties in the European Union vote. Meanwhile, Italy's far-right party, led by Prime Minister Giorgia Meloni, secured a robust 28 percent of the votes in the European elections.
In Asia, markets exhibited mixed results amid light holiday trading. Japan's Nikkei rose following a marginally positive revision in gross domestic product data. Markets in China, Hong Kong, and Australia remained closed due to public holidays.
The dollar saw a rebound, and gold prices remained relatively stable, hovering below $2,300 per ounce. Oil prices experienced a slight increase following three consecutive weeks of losses.
The Federal Reserve is set to announce its latest monetary policy decision on Wednesday. Although no change in interest rates is anticipated, the accompanying policy statement may provide further insights into the timing and pace of potential interest rate cuts later this year.
Investor focus for the week will also be on upcoming U.S. reports, including consumer price inflation, producer prices, import and export prices, consumer sentiment, and inflation expectations.
U.S. stocks finished slightly lower on Friday, as a stronger-than-expected jobs report led to an increase in Treasury yields, casting doubt on the likelihood of Fed rate cuts this year. The benchmark 10-year yield rose by 14 basis points, exceeding 4.4 percent after data revealed that non-farm payroll employment surged by 272,000 jobs in May—substantially above the expected 185,000 jobs, and an increase from April's 165,000.
Average hourly earnings also surpassed expectations, while the jobless rate climbed to 4 percent, the highest level since January 2022. The S&P 500 declined by 0.1 percent, while both the Dow and the tech-heavy Nasdaq Composite slipped approximately 0.2 percent.
On Friday, European stocks concluded lower due to diminished hopes for U.S. rate cuts. The pan-European STOXX 600 decreased by 0.2 percent, with the German DAX, France's CAC 40, and the U.K.'s FTSE 100 indices each falling by around half a percent.
