As the UK general elections approach, European stocks continue to rally. As a result, the S&P 500 has reached a record high after Federal Reserve Chair Jerome Powell said inflation is falling in the US. Because of this, investors have been less concerned about interest rate increases.

Meanwhile, in France, the benchmark CAC 40 index jumped as well. Anti-National Rally parties tried to prevent Marine Le Pen’s far-right group from achieving an absolute majority in the upcoming legislative vote on Sunday. The European regional Stoxx 600 index also surged forward by 0.4%. According to the reports, miners and technology stocks are leading the gains.

European Market Turbulence Continues As UK Elections Approach

In Europe, political turbulence following the French snap election has impacted markets significantly, along with the UK elections. Hedge funds are cutting their investments in European stocks. This has affeced the markets as sales increased significantly.

Europe also reported the biggest drop in overweight positions worldwide in June. In the currency market, the euro climbed up by 0.1% to $1.0761, and the British pound remained stable at $1.2695 today.

What’s Happening in the US Market?

In the United States, equity futures remained steady ahead of a short trading day due to the July 4 holiday. However, the S&P 500 traded above 5,500 at the end of the session for the first time on Tuesday. The index has hit its 32nd record this year. Furthermore, the Nasdaq 100 skyrocketed to an all-time high, closing above 20,000 for the first time.

Despite some uncertainty connected with the Trump case and some negative forecasts, US stocks continue to rally. Robust corporate earnings, growing enthusiasm for AI, and expectations of lower interest rates from the Fed due to falling inflation contribute to the optimistic mood in the markets. Consequently, the S&P 500’s value increased by more than $16 trillion during this bullish period.

Investors are now waiting for US initial jobless claims and ADP employment data. The latter is due on Wednesday. The US payroll report will also come out on Friday. Economists forecast that the report would show an addition of approximately 190,000 jobs in June. The unemployment rate will likely stand at 4%, though.

Asian Market Trends – Stocks are on Track for Their Longest Streak of Gains since May

In Asia, stocks continue to rally. Japanese equities soared, with benchmarks nearing record highs. However, in China, services activity grew at its slowest pace in eight months in June. Due to this news, some investors are concerned about economic growth in China.

Despite that, stocks in Hong Kong surged forward, but on the mainland, shares declined. The MSCI Asia Pacific Index traded higher by 0.7% today, while the MSCI Emerging Markets Index added 0.8%. On the other hand, Asian currencies suffered, with the Japanese yen plummeting by 0.2% to 161.81 per USD. The offshore yuan traded at 7.3087 per USD, though.