In brief: 

Bond Market Fluctuations: Global bond yields initially surged, driven by rising U.S. debt concerns and political tensions in France. However, yields later declined following dovish comments from Fed Chair Jerome Powell, who expressed comfort with ongoing disinflationary trends in the U.S., despite stronger-than-expected job opening data suggesting a still tight labour market.


Central Bank Directions: Mixed economic indicators such as the U.S. ISM Services index falling into contraction sparked market optimism about potential rate cuts. The Reserve Bank of Australia remains in wait-and-see mode amid confusing signals on consumption and inflation. The Bank of Canada is now seen as more likely to cut rates in July after unemployment rose.


Political Events Impacting Markets: The UK general election and France's legislative elections were focal points, with the UK's Labour party gaining a historic majority, expected to ensure fiscal continuity. France saw a fragmented outcome that prevented any single party from gaining a majority, thereby reducing the risk of radical policy changes. 

Read the report:www.investsense.com.au/industry-articles/delicately-balanced-markets-react-to-mixed-economic-signals-and-political-uncertainty 


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