Asian markets showed mixed results on Monday following a stronger-than-expected U.S. jobs report. The euro declined after French President Emmanuel Macron dissolved the National Assembly due to setbacks in the parliamentary election.

Key Points of stock market

  • Asian Markets: Tokyo’s Nikkei 225 rose 0.5% despite Japan’s economy contracting at an annualized 1.8% pace in Q1. South Korea’s Kospi fell 0.7%. Markets in China, Hong Kong, Australia, and Taiwan were closed.
  • European Impact: Far-right gains in France led to Macron dissolving the National Assembly, causing the euro to drop to $1.0766.
  • U.S. Markets: S&P 500 down 0.1%, Nasdaq down 0.2%, Dow down 0.2%. U.S. employers added 272,000 jobs in May, exceeding expectations.
  • Treasury Yields: The yield on the 10-year Treasury rose to 4.43%, and the 2-year yield increased to 4.89%.
  • Federal Reserve: Speculation on interest rate cuts reduced after strong jobs data. Fed officials are expected to hold interest rates steady at their upcoming meeting.
  • Consumer Spending: Retail earnings indicate reduced spending on non-essentials due to inflation. Consumer spending remains a critical support for the economy but is pressured by persistent inflation.
  • GameStop: Shares plunged 39.4% after reporting another quarterly loss and announcing plans to sell up to 75 million more shares.
  • Oil Prices: U.S. benchmark crude rose to $75.76 per barrel, and Brent crude increased to $79.90 per barrel.
  • Currency: The U.S. dollar strengthened to 157.12 Japanese yen.

The global financial markets are experiencing a period of mixed performance and uncertainty. Asian markets displayed varied reactions to the stronger-than-expected U.S. jobs report, while European markets were jolted by political developments in France. The dissolution of the French National Assembly by President Macron led to a dip in the euro, reflecting heightened political risk.

In the U.S., robust job growth continues to complicate the Federal Reserve’s strategy on interest rates, although signs of an economic slowdown are emerging. Retail earnings indicate consumer spending is focused on essentials amid persistent inflation, affecting overall economic support.

GameStop’s significant stock decline highlights ongoing challenges for companies at the center of speculative trading. Meanwhile, oil prices saw a slight increase, and the U.S. dollar strengthened against the yen, signaling investor moves in response to broader economic conditions. As markets navigate these dynamics, careful monitoring of political and economic indicators will be crucial for anticipating future trends.