Equities in Asia are expected to have a flat open as traders await US jobs data for clues on Federal Reserve rate cuts. Equity futures for Japan are unchanged, while those for Australia and Hong Kong are slightly lower. The Euro Stoxx 50 index rose 0.4% for a second daily advance. Keir Starmer's Labour Party is projected to win the UK general election with a huge majority, according to exit polling data. The opposition Labour Party won a comprehensive victory, ending 14 years of Conservative government. Labour, led by Keir Starmer, won 410 of the 650 seats in parliament. U.K. stocks and the pound rose as investors anticipate a period of market stability. The right-wing populist Reform UK party, led by Nigel Farage, also saw growth in the election. The French parliamentary election is also in focus, with the far-right National Rally and a hung parliament as the most likely scenarios. In the U.S., investors are awaiting the monthly jobs report for clues on when the Federal Reserve will start cutting interest rates. Economists expect the U.S. economy to have added 189,000 jobs in June. Shell announced it will take a $2 billion impairment charge after selling its Singapore refinery and pausing construction of a biofuel plant. French bank BNP Paribas and Swiss lender UBS are reportedly interested in buying HSBC's German wealth-management unit. Crude prices edged lower but were on track for a fourth consecutive positive week on hopes of strong summer fuel demand in the U.S.
Asian markets were largely down on Friday as traders awaited a key US jobs report. Japanese markets started higher with Tokyo's benchmark Nikkei 225 index crossing new record heights. The broader Topix index, which surpassed its previous peak set in 1989, also shed some of its gains. The yen continued strengthening against the dollar. Samsung Electronics' forecast that second-quarter profits would beat expectations by more than 25 percent sent its share price higher. Shares in Hong Kong ended a four-day winning streak, while stocks in mainland China were trading lower after the European Union imposed extra provisional duties on Chinese electric car imports. European markets built on gains after a Labour win in the UK and moves to block a far-right ascent in France. London, Paris, and Frankfurt all moved higher in early trading. The return of the main opposition Labour Party to power in Britain ended 14 years of Tory rule and strengthened the pound. In France, the withdrawal of centrist and left-wing candidates from this weekend's runoff boosted the euro and breathed life into European markets. Investor sentiment was also lifted as softer US labor market data gave the Federal Reserve room to cut interest rates, with another key jobs report due Friday. [9b7c54d0]
Traders will turn their focus towards the US and Canadian jobs market as we close out the week. Traders are expecting to see the figure fall through the 200k mark today. With the dollar continuing to head lower this morning, there is a hope that a weak jobs report could help lift US equity markets into fresh record highs on the heightened anticipation of a September rate cut from the Fed. The FTSE 100 and mid 250 are both in the green following an overnight election that has been dominated by the red of the Labour party. Keir Starmer will lead the country going forward, winning a landslide victory after 14 years of Conservative rule. The transition of power lines up perfectly with the perceived end of this latest battle against inflation. One area of particular strength this morning has been the housebuilders, with Taylor Wimpey, Barratt Developments, Vistry, and Persimmon all gaining over 3% at the open. [1e7efccf]