Following significant victories by far-right groups in Sunday's legislative elections, French President Emmanuel Macron announced the holding of early elections. The euro fell to its lowest level in over a month as a result of this.
Monday saw a general decline in global markets after the hotter-than-expected US employment data that was issued on Friday. Meanwhile, the euro saw a decline following the dissolution of the National Assembly by French President Emmanuel Macron in response to a loss in Sunday's legislative election.
Following significant victories by far-right groups in Sunday's legislative elections, French President Emmanuel Macron announced the holding of early elections. The euro fell to its lowest level in over a month as a result of this. The euro dropped down from $1.0778 to $1.0766.
The area was shadowed by the incumbent parties' failures. Germany's DAX fell 0.7% to 18,425.26, while the Paris CAC 40 fell 1.7% to 7,866.87. In early trade, the FTSE 100 in Britain fell 0.4% to 8,215.84.
The S&P 500 saw a 0.1% decline in the future, while the Dow Jones Industrial Average saw a 0.2% decline.
Asia's markets had a mixed finish. The official statistics on Monday revealed that Japan's GDP fell at an annualized 1.8% rate in January-March, an upward adjustment from the previously disclosed 2% decline. This news caused the Nikkei 225 index in Tokyo to rise 0.9% to 39,038.16.
The Kospi in South Korea fell 0.8% to 2,701.17.
Holiday closures affected markets in Australia, China, Hong Kong, Taiwan, and Hong Kong.
The Nasdaq composite dropped 0.2% and the S&P 500 dipped 0.1% on Friday. The Dow decreased by 0.2%.
Employers in the US created 272,000 new jobs in May, more than analysts had predicted and up from April. The survey also revealed that for a second consecutive month, the jobless rate increased. Overall, this suggests that the labor market will continue to be strong, notwithstanding a few slight indications of weakness. The robust employment market has helped the economy as a whole and consumer spending, but it has also made the Federal Reserve's future interest rate path more difficult.
"According to Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, "we are back to the beginning position where the Fed could difficult justify a rate decrease while employment data remains robust and inflation is not falling as rapidly as it should,"".
The 10-year Treasury yield increased from 4.29% to 4.43% just before the announcement of the employment data. Before the news was released, the two-year yield, which more closely matches Fed predictions, was 4.74%. It then surged to 4.89%.
Last week's economic figures suggested that the economy could be slowing. According to the most recent data, employment opportunities are declining, worker productivity isn't as high as experts predicted, and manufacturing shrank in May.
It is anticipated that when the Fed meets later this week, interest rates will remain unchanged. According to statistics from CME Group, investors removed even more wagers that the Fed will lower rates at its July meeting after the employment report was released.
Wall Street has also been keeping an eye on store results, which indicate that consumers are cutting down on non-essential purchases. The economy has mostly been supported by consumer spending, but consumers are suffering from persistent inflation, particularly those with lower incomes.
Following another quarter of losses and an announcement that it would be selling up to 75 million additional shares, GameStop, the ailing video game company at the epicenter of the meme stock frenzy, saw a 39.4% decline in its price.
In other transactions, the New York Mercantile Exchange's benchmark US crude oil fell 18 cents to $75.35 a barrel through electronic trading.
The global benchmark, Brent crude, lost 11 cents to $79.51 a barrel.
From 156.83 Japanese yen to 156.86 yen, the US dollar appreciated.
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