"French stocks advanced strongly despite the latest political turbulence, as investors shrugged off the ousting of former Prime Minister Michel Beyrou, with his failed vote of confidence largely priced in by markets. Beyrou's efforts to reduce spending in a bid to bring down the French debt burden means his successor is likely to take a less conservative approach which means higher spending and continued debt concerns."
"Another day, another record high for gold, with Friday's downbeat jobs market assessment bringing yet another dose of optimism for those hoping the Fed will ramp up easing. The 22,000 payrolls figure once again relied heavily on healthcare which appears to be the only sector keeping US payrolls from being negative each month. With inflation data due this week, another controlled CPI figure could yet bring additional hopes of a 50bp cut next Thursday (currently priced at 12%)."
European equities showed mixed early trade, with the CAC 40 leading gains despite political and fiscal uncertainty. French stocks advanced as markets priced in the failed vote of confidence and the ousting of former Prime Minister Michel Beyrou. Beyrou's spending-cut plans likely will be softened by a successor, implying higher spending and persistent debt concerns. Gold reached record highs after a weak US jobs assessment raised hopes of Federal Reserve easing. The 22,000 payrolls reading relied heavily on healthcare, and controlled CPI data could increase expectations for a 50bp cut. Sovereign debt worries and leadership turnover in France and Japan underscore fiscal tensions.
Read at London Business News | Londonlovesbusiness.com
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