Anticipating Business Impact of Upcoming Election

In the upcoming week, there are several key events to watch in the world of business and finance. The U.S. monthly jobs report is set to be released on Friday, July 5th, with economists predicting an increase of 180,000 jobs in June. This follows a surprisingly large increase of 272,000 jobs in May, leading to the Federal Reserve holding interest rates steady for the time being.

Meanwhile, France is heading to the polls on Sunday for the first round of an election that has caused some market jitters. Despite concerns over a spending surge, Marine Le Pen’s far-right National Rally party has indicated they would be financially responsible. However, French bank stocks are still suffering from double-digit losses, indicating a slow road to recovery.

In Britain, the Labour Party is expected to win by a landslide on Thursday, which could boost UK stocks and government bonds. However, the Institute for Fiscal Studies think-tank has warned of vast fiscal challenges that neither party has addressed. The trade-weighted sterling has bounced back to pre-Brexit levels, but uncertainties remain.

There is also a stand-off in Asia as the Federal Reserve’s stance and a strong dollar leave little room for immediate rate cuts. Inflation in many emerging Asian economies has fallen within central banks’ targets, prompting policymakers to maintain higher rates to protect their currencies. The Bank of Thailand’s Governor is set to speak on Thursday, likely reiterating the central bank’s cautious approach.